New York Times Co. (NYSE: NYT) has reported its first quarter earnings report on Wednesday, surpassing expectations is subscriber growth. Shares of the company jumped more than 11% after the report.
According to the Times’ report, the company its digital advertising revenue rose 19 percent, to $50 million, in the first quarter, which ended in late March. It also added 308,000 net digital-only news subscriptions - the most of any quarter in its history — helping to propel an 11 percent increase in circulation revenue.
On the down side, the print media segment continues to straggle. The Times reported that the company continues to face stiff headwinds on the print side. Print advertising revenue fell 18 percent, driving a 7 percent decline in total advertising revenue for the quarter.
Mark Thompson, the chief executive of The Times, remains positive despite the straggling print media segment. "Despite continued pressure on print advertising, we were able to grow overall revenues by 5 percent in the quarter," the CEO said.
Thompson called the growth in digital advertising revenue “a vindication” of the company’s decision to focus on mobile, branded content and other marketing opportunities, including virtual reality and podcasts, the Times reported.
The company expects second-quarter growth in the number of digital-only news subscriptions to slow compared with the previous two quarters as the effects of the so-called Trump bump subscriptions will slow down.