New York Times Co. (NYT), publisher of the namesake newspaper, posted earnings that beat analysts’ estimates as digital-advertising sales increased and customers signed on to a new online subscription model. The shares rose.
Earnings per share, excluding some items, fell to 14 cents in the second quarter, the New York-based company said in a statement today. That exceeded the average estimate from analysts of 9 cents in a Bloomberg survey. Revenue fell 2.2 percent to $576.7 million. Analysts had projected $577.6 million.
“They’ve been right-sizing the business,” Derek Maupin, an analyst at Dallas, Texas-based Hodges Capital Management, said in an interview. “As the big picture improves, you’ll see them continue to stabilize.” Hodges owns about 100,000 Times Co. shares.
Advertising revenue slid 4 percent, as digital-ad sales rose 2.6 percent and print ad sales fell. Circulation revenue was little changed compared with the year-earlier period.
The company reported a net loss of $119.7 million, or 81 cents a share, compared with a profit of $32 million, or 21 cents, a year earlier. The company had an expense of $161.3 million for writing down the value of assets at the News Media Group division.
With news consumers shifting from print to digital platforms, Times Co. in March introduced a Web-based subscription model at the New York Times, which requires online readers who view more than 20 articles per month to pay for access to the site’s content. Times Co. said it had 224,000 subscribers for the new service at the end of the quarter.
Times Co. climbed 17 cents, or 1.9 percent, to $9.14 at 4:15 p.m. in New York Stock Exchange composite trading. The stock has declined 6.7 percent this year.
To contact the reporter on this story: Brett Pulley in New York at email@example.com
To contact the editor responsible for this story: Peter Elstrom in New York at firstname.lastname@example.org.