New York Times’ Earnings Continue To Decline Driven By Print Ad Struggles
The New York Times Company (NYSE:NYT) announced its second quarter earnings on Thursday, July 28. The company’s revenue declined 2.7% year-over-year (y-o-y) to $372.6 million. The company’s advertising revenue fell by 12% y-o-y to $131 million largely due to declines in both the print and traditional digital segments. The company also reported a slight net loss compared to a profit of $16 million in the same quarter last year.
NYT’s adjusted operating profit declined by 15% y-o-y to $54 million owing to the ongoing advertising revenue weakness and company’s investments in its digital products.
Improvement In Circulation Revenues
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The company’s circulation revenue increased by 3% to $219 million on the back of growth in digital subscription revenues, increased home delivery prices and partially offset by declines in print copy sales. Print circulation was down 1% y-0-y, with declines in revenue for both total daily print circulation (-6% y-o-y) and Sunday circulation (-4% y-o-y).
On the other hand, the company posted solid digital subscriber growth. The total circulation revenue from digital-only subscriptions increased by 15% y-o-y to $56 million. 51,000 net paid digital-only subscriptions were added to the news products in this quarter, compared to 33,000 in the same quarter last year. 
Advertisement Revenues Continue To Decline
NYT’s print advertising revenues declined 14% y-o-y due to declines in both the New York Times and the International New York Times. Digital advertising revenue decreased 6% y-o-y due to declines in homepage and other traditional display advertising.
Q3 Guidance
The overall growth in circulation revenues is likely to be driven by digital subscription revenues. NYT expects an addition of 55k to 60k net digital-only subscriptions, which are now reported under circulation revenues. However, the company expects the advertising segment to see declines. Digital advertising will likely see strong growth, however, as the focus on branded content, programmatic video, VR and other new forms of storytelling have performed well in Q2 and are expected to improve going forward.
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