Thursday, July 26, 2012

The New York Times Co. announces dismal Q2 results: $143.6 million operating loss, ad revenue falls 6.6%

The New York Times Co. posted a net loss of $88.1 million, impacted by the write down in value of About.com, and continuing decreases in ad revenue. The operating loss for the second quarter was $143.6 million, versus an operating profit of $31.5 million a year ago.

Advertising revenue from print fell 8 percent in the quarter, but online ad revenue fell, as well – a 1.6 percent decrease to $52.6 million.

At the NYT and Herald Tribune success with the company's digital subscription efforts meant that circulation revenue now exceeds ad revenue – $194 million versus $171 million. Paid digital subscriptions rose 12 percent in the quarter to 509,000.

The Boston Globe, another New York Times Co. property, were up 28 percent to 23,000 subscribers.

“Our second-quarter results reflect our ongoing strides in repositioning the Times Company for an increasingly multiplatform future,” Arthur Sulzberger, Jr., chairman and chief executive officer, The New York Times Company, said in the company's earnings statement.

“While the advertising market remains challenging, the rate of decline for the Company’s total advertising revenues moderated, due primarily to improved digital advertising revenue trends, compared with firstquarter 2012 levels. This was mainly due to more favorable advertising trends at the About Group, particularly for cost-per-click advertising. Although we recorded a non-cash charge in the quarter, the About Group continues to execute on its turnaround strategy and we expect it to be on track to post continued meaningful improvement in the second half of the year," Sulzberger said.

Yesterday Reuters reported that The New York Times would no longer support its BlackBerry app, citing a lack of usage. "It's a matter of usage of our apps, and we dedicate our resources where we think there's the highest level of usage," Reuters quoted Eileen Murphy, a New York Times spokeswoman. "We've seen a drop-off."

The Times did not, however, completely rule out developing an app for BlackBerry 10 when it is launched.

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