Get breaking news alerts via email

Click here to manage your alerts
New York Times misses profit estimates
Earnings » Quarterly net income cut in half as ad revenue fell for 14th time in 15 months.
First Published Jul 29 2014 05:34 pm • Last Updated Jul 29 2014 05:34 pm

New York • New York Times Co. missed second-quarter profit estimates as advertising sales declined for the 14th time in 15 quarters.

Ad revenue dropped 4.1 percent to $156.3 million, the New York-based company said Tuesday in a statement. Earnings, excluding some items, were 7 cents a share, compared with the 8 cents projected by analysts, according to the average of estimates compiled by Bloomberg. The shares fell the most in 21 months.

Join the Discussion
Post a Comment

Jill Abramson, the first female executive editor of the Times, was fired in May as the publication — along with most news organizations — struggles to find footing in digital media, where ad rates are far cheaper than in print.

In the first quarter, Times Co. reported its first rise in ad sales in more than three years — an increase that Chief Executive Mark Thompson warned may not continue.

Times Co. expects third-quarter ad sales to decrease in the "mid-single digits" percentage, with circulation sales remaining unchanged, according to Tuesday’s statement. Times Co. has a market value of about $2 billion.

Second-quarter revenue shrank less than 1 percent to $388.7 million, compared with the average estimate of $390.5 million. Circulation sales rose 1.4 percent to $209.8 million, helped by the addition of new digital subscription products such as NYT Now. The publisher added about 32,000 digital-only subscribers in the period to reach 831,000, up from the 799,000 customers at the end of March.

Net income fell to $9.2 million, or 6 cents a share, in the quarter, down from $20.1 million, or 13 cents a share, a year ago. Operating costs rose 5.2 percent to $362.7 million as the publisher continues to invest in its transition to a digital newsroom.

When Chairman and Publisher Arthur Sulzberger dismissed Abramson more than two months ago, he said she had publicly mistreated colleagues and failed to properly communicate her management decisions. He denied that gender bias played any role in the dismissal following reports Abramson had confronted Sulzberger after she reportedly discovered that she was paid less than her male predecessor.

Dean Baquet, who took over for Abramson, is trying to find a way to better negotiate the paper’s business interests as digital initiatives continue to encroach deeper into editorial terrain. Abramson had chafed at the introduction of native ads, the marketing messages crafted to resemble news articles.

Those messages have nonetheless helped temper declines in the Times’ ad revenue, and the publisher’s online subscription plan, started in 2011, has helped spur circulation sales growth.

story continues below
story continues below

CEO Thompson has worked to extend the Times’ paying readership by creating packages of news coverage at different prices, including a new limited plan called NYT Now that costs $8 a month, as well as a higher-end plan called Times Premier.

Copyright 2014 The Salt Lake Tribune. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Top Reader Comments Read All Comments Post a Comment
Click here to read all comments   Click here to post a comment

About Reader Comments

Reader comments on sltrib.com are the opinions of the writer, not The Salt Lake Tribune. We will delete comments containing obscenities, personal attacks and inappropriate or offensive remarks. Flagrant or repeat violators will be banned. If you see an objectionable comment, please alert us by clicking the arrow on the upper right side of the comment and selecting "Flag comment as inappropriate". If you've recently registered with Disqus or aren't seeing your comments immediately, you may need to verify your email address. To do so, visit disqus.com/account.
See more about comments here.
Staying Connected
Contests and Promotions
  • Search Obituaries
  • Place an Obituary

  • Search Cars
  • Search Homes
  • Search Jobs
  • Search Marketplace
  • Search Legal Notices

  • Other Services
  • Advertise With Us
  • Subscribe to the Newspaper
  • Access your e-Edition
  • Frequently Asked Questions
  • Contact a newsroom staff member
  • Access the Trib Archives
  • Privacy Policy
  • Missing your paper? Need to place your paper on vacation hold? For this and any other subscription related needs, click here or call 801.204.6100.