Apple CEO Tim Cook’s important Businessweek column; NYT posts loss in Q3, but also modest revenue gains
Morning Brief: NYT digital revenue up 17 percent year-over-year, cuts losses in quarter, but is now in the red for the full year heading into the fourth quarter
There is very little to say about Apple CEO Tim Cook’s beautifully written column for Businessweek that others won’t say better. His column, where he confirms that he is gay, and explains his reluctance to publicly discuss it, is a powerfully written plea for tolerance from arguably the most important business leader in America.
“Being gay has given me a deeper understanding of what it means to be in the minority and provided a window into the challenges that people in other minority groups deal with every day,” Cook wrote. “It’s made me more empathetic, which has led to a richer life. It’s been tough and uncomfortable at times, but it has given me the confidence to be myself, to follow my own path, and to rise above adversity and bigotry.”
The New York Times Co. this morning reported third quarter earnings, posting a net loss in the quarter. But the results were actually pretty encouraging as revenue held steady – actually increasing 0.8 percent – while the loss, $12.5 million, was actually half what the loss was in the same quarter a year ago.
“Our third-quarter performance was better than we anticipated, reflecting broad digital strength that more than offset print revenue declines, leading to overall revenue growth of approximately 1 percent,” said the NYT’s president and CEO Mark Thompson. “Digital advertising revenue saw its third consecutive quarter of positive growth – up nearly 17 percent year-over-year – and print advertising revenue rallied in September as well, putting overall advertising revenues at roughly flat, despite a difficult prior-year comparison.”
“On the digital subscription side, we finished the quarter with 44,000 net new additions, a 20 percent year- over-year increase and our best quarterly result in nearly two years, with our core products making the larger contribution to the total this time around.”
The fourth quarter should be an improvement as there is a mid-term election to boost advertising, as well as the holiday season.
But the company will struggle to post any profit at all for 2013, which has to be a concern. As a result, the company has been cutting costs, including downsizing its newsroom – though the NYT still maintains a massive editorial staff, and is hardly at a bare bones state compared to other newspapers, at other newspaper companies.
One of the areas the company is cutting is its Sunday Auto section, which will be shuttered starting next year. The staff will be leaving the paper.
I would be remiss to not mention that picture of Madison Bumgarner on the front of the Times this morning. Mr. Bumgarner’s picture will be on a lot of front pages today (and Tim Cook’s tomorrow) after his incredible performance in the World Series.
As long time TNM readers know, I am a rabid Giants fan, having adopted both the team as my team upon moving to the Bay Area in 1988. The reason for this is that the Giants have a long and interesting history, yet the City was close to losing its team before new ownership stepped in.
Since I began TNM in 2010, the Giants have won three World Series titles, and if I am moving a little slow this morning you will understand why.