The New York Times Co.’s first-quarter earnings fell 58% as a decline in print advertising revenue outweighed an increase in digital advertising revenue.
Quarterly declines in print ad revenue at the Times Co. and other publishers narrowed through most of last year. But the Times Co.’s latest results suggest the improvement may be stalling.
The company said that it earned $5.4 million, or 4 cents per share, during the three months ending March 27. That compared with net income of $12.8 million, or 8 cents per share, a year ago. The latest earnings matched the average estimate of analysts polled by FactSet.
After stripping out one-time items in both quarters, such as severance payments and tax-related adjustments, this year’s performance looked even worse: earnings of 2 cents per share, compared with 11 cents a year ago.
Revenue fell 4% to $567 million, about $7 million below analysts’ projections.
The Times Co.’s print ad revenue dropped 7.5% in the first quarter compared with a year ago; the decline was 7% in the fourth quarter.
Print advertising remains the major source of revenue for most newspapers, even as their publishers focus on expanding offerings on the web and mobile devices to draw digital advertising.
The New York Times newspaper is seeking additional digital revenue by charging readers for full access to its website and mobile services. The new fees, which range from $15 to $35 every four weeks, started in Canada on March 17 and expanded to the rest of the world on March 28, the day after the first quarter ended.
The Times Co. said Thursday that it has attracted more than 100,000 subscribers so far. The company said those numbers exceeded expectations but cautioned it was too early to estimate how many it will retain after their promotional periods expire. Times CEO Janet Robinson said the fees have also attracted more print subscribers because they get online access for free; she didn’t provide specifics during a conference call Thursday.
