New York Times Co (NYSE:NYT) announced its second-quarter financial results on Thursday. The company posted a net loss of $211,000 influenced by the falling print and digital advertising sales.
According to the statement, total revenue in the second quarter decreased 2.7% to $372.6 million, and operating profit dropped to $9.1 million compared with $38.1 million in the same period last year.
Net loss of the second quarter was $211,000, compared with the $16.4 million net profit in the same period last year. Adjusted earnings per share were 11 cents, which missed the expectation of 12 cents.
Printing Advertising sales dropped 14.1% and is the main reason of the decrease in total advertising revenues, which fell 12% to $131.2 million in the second quarter. The printing advertising make up around two-thirds of its total advertising revenue, and led to the net loss of the company.
Opposite to the decline of printing advertising, circulation revenue increased 3% to $219.5 million, and the revenue from digital-only subscriptions increased 15% to $56.4 million. In the second quarter, the company also managed to cut costs by reducing headcount and closing parts of the international operations. The costs were down 1.4% to $339.9 million.
“Advertising was tougher in the quarter, particularly on the print side. In digital, we saw very strong growth in mobile, video and virtual reality, branded content and programmatic advertising. These were not enough to offset declines in traditional web display in Q2, which led to an overall decline in digital advertising.” Mark Thompson, the president and chief executive officer of New York Times, said in the statement. The company also said that in spite of the higher circulation revenue and cost cuts, they could still not offset the decline of advertising sales.
However, the company showed a positive attitude towards the situation in the second half of 2016. “We are already seeing a marked turnaround in July. We expect to deliver strong revenue growth from both digital advertising and our digital consumer business in Q3”, said Mark on Thursday.
Shares of New York Times dropped 2.11% to $12.52 per share in the afternoon trading hours on Thursday.