New York Times Co. profit increases, but ad revenue continues to fall
The New York Times Company this morning reported second quarter earnings which showed an increase in operating profits, achieved mostly through cost savings.
The NYT Co. continued to report stronger circulation revenue, $245.1 million, up 5.1 percent over the same quarter last year. At the same time, ad revenue, which is now a smaller share of overall revenue than circulation, continued to fall – down 5.8 percent on the quarter to $207.4 million. Overall revenue was down less than one percent, and down 1.4 percent for the first half of the year.
“Our improved results in the second quarter were an organization-wide effort – with contributions from more favorable revenue trends and strong cost performance,” Mark Thompson, president and chief executive officer, said in the company’s statement. “The increase in operating profit reflects the ongoing evolution of our digital subscription initiatives on the circulation side, the moderation of revenue declines on the advertising side and the continued focus on managing costs.”
Digital subscription revenue continues to climb, up 44.1 percent over a year ago to $38.3 million.
But the Times is not only losing print ad revenue, but digital ad revenue, as well. Digital ad revenue now makes up 24.7 percent of ad revenue, but this is more a result of continued declines in print ads. Digital ad revenue fell 2.7 percent in the second quarter.
The emphasis on paid circulation, at the expense of advertising, will severely limit the publishing company’s ability to launch ad supported new digital products at a time when other media companies continue to see increases in digital advertising.