The New York Times Co. (NYSE: NYT) on Wednesday reported a better-than-expected quarterly profit. However, the Company said it added fewer digital subscribers, sending shares down 5% in premarket trading.
The Manhattan-based media company added 109,000 paid digital subscribers in the second quarter, compared to the 114,000 a year earlier.
The Company said on Wednesday that revenue from digital subscriptions rose to USD 99 Million in the second quarter, a jump of nearly 20% compared with the same period a year ago. Over all for the second quarter, total revenue increased 2%, to USD 415 Million, and the Company reported a profit of almost USD 24 Million.
“Subscription revenues accounted for nearly two-thirds of the Company’s revenues, a trend we expect to continue,” Mark Thompson, New York Times Chief Executive Officer, said in a news release. “We continue to believe that there is significant runway to expand that base substantially.”
Digital advertising revenue, which accounts for more than a third of the Company’s total advertising revenue, fell 7.5% to USD 51 Million, hurt by a fall in display advertising.
“This was a subdued quarter for digital advertising as we predicted, but we remain confident that we will return to strong year-over-year growth in the third quarter,” Thompson added in a statement.
Net income attributable jumped 51% to USD 23.6 Million, or 14 cents per share, in the quarter. Excluding items, the company earned 17 cents per share, above the average analyst estimate of 15 cents. Revenue rose to USD 414.6 Million from USD 407.1 Million, above estimates of USD 412.3 Million.