New York Times earnings boosted by upturn in advertising activity, stocks rise
Aug.4 (Reuters) – The New York Times Co (NYT.N) beat quarterly profit expectations on Wednesday as its advertising business showed signs of recovery, eclipsing slower growth in digital subscriptions and pushing its shares up 12 %.
Last year, the financial fallout from the COVID-19 crisis had significantly reduced the publication’s advertising revenue. But with companies increasing their marketing budgets after the economy reopened, the Times saw a 66% increase in ad sales.
Most of that came from large tech and financial services companies, which have spent a lot on the company’s targeted advertising products, said CFO Roland Caputo.
The publication expects ad revenue to grow 30% to 35% in the current quarter.
It posted adjusted second-quarter earnings of 36 cents per share on revenue of $ 498.5 million. Analysts had expected earnings of 27 cents a share on revenue of $ 487.7 million, according to data from Refinitiv IBES.
THE GROWTH OF DIGITAL SUBSCRIBERS IS SLOWING
The growth of Times digital subscribers, however, fell to its lowest level in three years, as interest in national COVID-19 news waned after vaccinations.
The 170-year-old post added just 142,000 digital subscribers in the quarter ended June, its lowest since the second quarter of 2018.
Downloads of the company’s app fell by two-thirds year-over-year between May and June, according to data from Sensortower.
Still, coverage of the devastating events in South Florida, the political crisis in Haiti and the still-burgeoning pandemic in other parts of the world helped draw readers in, CEO Meredith Kopit Levien said.
At the end of the quarter, The Times had nearly 8 million total subscriptions, of which 7.1 million were digital only.
The company’s shares rose the most in over a year and a half to reach $ 48.75.
Reporting by Eva Mathews in Bengaluru; Editing by Aditya Soni
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