Left Menu
Development News Edition

UPDATE 4-New York Times forecasts weakness in digital ads, shares down 12%

Reuters | New York | Updated: 08-08-2019 00:08 IST | Created: 08-08-2019 00:07 IST
UPDATE 4-New York Times forecasts weakness in digital ads, shares down 12%
Image Credit: Pixabay

The New York Times Co fell short of Wall Street estimates for revenue on Wednesday and warned of declines in digital advertising for the rest of the year, sending its shares down 12%. The outlook overshadowed a better-than-expected second-quarter profit, helped by the 167-year old newspaper's efforts to make money from digital subscribers to counter a relentless decline in readership of its broadsheets.

Those efforts have paid off as company has added online subscribers at a fast pace in the past few years, also aided by the so-called "Trump bump" - the effect of U.S. President Donald Trump's attacks on the paper as well as its coverage of his administration. The company, however, said it now sees digital advertising revenue to fall in the high-single digits percentage, attributing the drop to the timing of some large-scale, multi-month deals.

"We expect the second half of 2019 to be somewhat more challenging for digital advertising than the first half, with this year's revenue coming against our large gains in the third and fourth quarters of 2018," Chief Executive Officer Mark Thompson said in a statement. Douglas Arthur, an analyst at Huber Research Partners, said although he had expected slower growth in digital ad revenue, the forecast was "a disappointment".

The Times added 197,000 digital-only subscribers in the quarter, pushing total subscriptions to 3.78 million. Its digital advertising revenue rose about 14%. The paper has been aggressively rolling out offers to boost online subscriptions as more companies increasingly shift their ad dollars away from print to digital platforms such as Alphabet Inc's Google and Facebook Inc.

The Times said on Wednesday its $1 per week introductory offer weighed on average revenue per user (ARPU), which declined 9% from last year. "(The offer) will continue to put downward pressure on ARPU throughout 2019," the company said on a conference call with analysts.

Total revenue rose 5% to $436.3 million, missing analysts' average estimate of $438.7 million, according to IBES data from Refinitiv. Excluding items, the company earned 17 cents per share, compared with the average estimate of 15 cents.

Also Read: BRIEF-The New York Times Company Reports Q2 Adjusted Earnings Per Share $0.17



South Africa's COVID-19 response: Surprising outcomes or just poor data management?

South Africa has been committed to improving its health information system and shows that a robust digital has considerable scope to improve healthcare for the entire population. But the COVID-19 pandemic has highlighted that significant ga...

Post-COVID-19 Nigeria needs a robust Health Management Information System to handle high disease burden

Nigeria is among a few countries that conceptualised a health management information system HMIS in the early 90s but implementation has been a challenge till date. Besides COVID-19, the country has a huge burden of communicable and non-com...

Morocco COVID-19 response: A fragile health system and the deteriorating situation

Learning from its European neighbors, Morocco imposed drastic measures from the initial stages of the COVID-19 outbreak to try to contain its spread. The strategy worked for a few months but the cases have surged after mid-June. In this sit...

COVID-19: Argentina’s health system inefficiencies exaggerate flaws of health information system

You can recover from a drop in the GDP, but you cant recover from death, was the straightforward mindset of Argentinas President Alberto Fernndez and defined the countrys response to COVID-19. The South American nation imposed a strict...


Latest News

MSP will be hiked continuously in coming years; No threat to farmers' land: Rajnath Singh

Seeking to allay concerns of farmers over a new set of legislations amid continuing protests by some parties, senior union minister Rajnath Singh on Thursday assured the farm community that the MSP minimum support price will not only stay, ...

HMSI total sales increase 9 pc at 5,26,865 units in September

Honda Motorcycle Scooter India HMSI on Thursday reported 8.48 per cent increase in its total sales at 5,26,865 units in September. The company had sold a total of  4,85,663 units in the same month last year.Domestic sales last month s...

Coal India production up 32 pc at 40.51 MT in Sep

State-owned CIL on Thursday said it produced 40.51 million tonnes MT of coal in September, registering a growth of 31.6 per cent over the same month last year. Coal India CIL, which accounts for over 80 per cent of domestic coal output, had...

Coca-Cola India Releases Sustainability Update 2019-20

Highlights focus towards building sustainable communities as a foundation for sustainable business New Delhi, Delhi, India Business Wire India Marking the completion of a decade of sustainability reporting, Coca-Cola India today released i...

Give Feedback