What: New York Times Co. has released its Q3 profits beating analysts expectations with Net income of US$9.42 million( 6 cents a share) comparing to a loss of US$12.5 million, or 8 cents, a year earlier.
Why it matters: Print ad revenue fell 1 %( better than the 12.8% decline in the second quarter). Interestingly digital advertising declined by 5%. However, the company expects digital ad sales to post a year-over-year increase again in the fourth quarter.
- Ad revenue fell 2.1% in the quarter, weakened by digital ad sales that dropped 5 %, a major shift from the 14% gain in the second quarter)
- Print ad revenue fell 1 %( better than the 12.8% decline in the second quarter)
- Circulation sales gained 1.1%, a bit higher than in the most recent quarter
Earnings were 9 cents a share (comparing with the 6-cent average of estimates compiled by Bloomberg)
- Revenue rose about 1% from the quarter a year earlier, to US$367.4 million(Analysts had projected US$364.7 million)
- Operating expenses declined 7.6%, mostly because of savings on outside printing costs and distribution
- Net income was of US$9.42 million, or 6 cents a share, compared with a loss of US$12.5 million, or 8 cents, a year earlier.
Lately, the company has been trying to appeal more digital subscribers and sell online-marketing messages.The newspaper is actually planning to double its digital revenue to US$800 million by 2020 by increasing the number of paid online readers and drawing more young and international subscribers.
Moreover, the company added 51,000 digital subscribers, its biggest quarterly addition since the fourth quarter of 2012. Online subscribers now total to 1 million.
The Times has also teamed up with Facebook, Google and Apple to upload stories more quickly and reach readers on smartphones.
“It was our best advertising quarter of the year, year-over-year, despite a decline in digital advertising revenue, with better performance in print. We remain bullish about our digital advertising business and expect it to return to growth in the fourth quarter,” said New York Times Co. President-CEO Mark Thompson in a statement.