(Adds more detail on advertising, outlook and executive
By Jennifer Saba
April 24 The New York Times Co on
Thursday reported an almost 3 percent rise in first quarter
total revenue on increases in advertising sales - a first for
the company in several years.
The 3.4 percent increase in print and digital advertising
revenue marks a milestone for the company that has been plagued
by many quarters of declines as marketers choose to spend their
New York Times Chief Executive Mark Thompson, who oversees
the namesake newspaper, pointed to "paid posts" - content that
is marked as advertising - that the newspaper introduced in the
first quarter for helping to lift ad sales.
Digital advertising revenue was up 2.2 percent to $37.8
Still, Thompson warned that the overall advertising
environment is still uncertain and gains this quarter could be
"We are certainly not claiming victory in advertising yet;
we expect continued month-to-month volatility and recognize that
we will face some significantly tougher year-on-year comparisons
as the year goes on," he said in a statement.
The company forecast that total advertising revenue in
second quarter is expected to decease in the mid-single digits
compared to the same quarter a year ago.
Newspapers across the country have been racked with
challenges as advertisers flee print and readers turn to
smartphones and tablets to get their news.
The New York Times has been appealing to people to open
their wallets to read the news and has rolled out a line up of
digital products that require payment.
Subscription revenue, an important vein of money for the
newspaper that includes money from its digital products, rose 2
percent to $209.7 million and now represents more than 50
percent of total revenue.
Net income fell by half for the first quarter to $1.7
million. Adjusted for a charge related to an early termination
fee, earnings per share were 7 cents compared to 8 cents in the
same quarter last year.
Total revenue of $390.4 million beat analysts expectations
of $384.7 million, according to Thomson Reuters I/B/E/S.
(Reporting by Jennifer Saba in New York, Editing by Franklin