(Adds more details, executive comment, share price)
By Jennifer Saba
July 29 The New York Times Co reported a
dip in second-quarter revenue as print advertising revenue
erased the previous quarter's rise, and the company expects
print ad revenue to continue to decline in the future.
Shares of the company dropped almost 6 percent to $13.30
during Tuesday morning trading after the results were released.
Total revenue declined less than 1 percent to $388.7 million
compared to the prior-year quarter, mainly on a 7 percent drop
in print advertising. Total revenue fell below analysts'
expectations of $390.5 million.
The company warned that advertising revenue in the third
quarter is expected to decrease in the "mid-single digits" and
circulation revenue - once on a growth streak - is forecast to
In the first quarter, the Times said its print and digital
advertising revenue rose, snapping a dry spell that lasted
The flagship newspaper focused on ramping up its digital
advertising and getting more people to pay for its digital
products. In the second quarter, digital advertising revenue and
circulation revenue increased 3.4 percent and 1.4 percent,
respectively, but not enough to boost overall revenue.
Subscription revenue rose because of new digital products
that the company rolled out including the NYT Now app, which
accounted for most of the increase.
But Chief Executive Mark Thompson noted in a statement that
the Times needs to jump-start growth in digital subscriptions.
"We still have more work to do to transform our business and
deliver long-term sustainable revenue growth," he said.
Thompson added that over the next several months the company
will "refine some of the offers" for its digital products.
Paid subscribers to the company's digital-only products
totalled 831,000 as of the second quarter, an increase of 32,000
subscribers from the prior quarter.
Net income attributable to common stockholders fell to $9.2
million, or 6 cents per share, from $20.1 million, or 13 cents
per share a year earlier.
(Reporting by Jennifer Saba in New York and Abhirup Roy in
Bangalore; Editing by Ted Kerr and Phil Berlowitz)