Cost cuts help New York Times profit beat estimates
By Arathy S Nair
(Reuters) - New York Times Co's (NYT.N: Quote) profit beat market estimates for the third quarter in a row as the newspaper publisher's cost cuts offset a decline in revenue.
The company, whose shares jumped as much as 7.3 percent on the New York Stock Exchange on Thursday, also said it expects operating costs to decrease at a low-single digit percentage rate for the current quarter.
New York Times, which said in October it would cut about 7.5 percent of its newsroom positions and shut its NYT Opinion mobile app, said operating costs fell about 4 percent to $350.3 million in the first quarter.
Like several newspaper and magazine publishers, New York Times has been under pressure to replace an evaporating pool of print advertising dollars with digital ads and money from subscriptions.
The newspaper publisher forecast advertising revenue for the second quarter to fall at a mid-single digit percentage rate.
First-quarter advertising revenue fell 5.8 percent to $149.9 million as a 10.7 percent jump in digital ad revenue could not offset a 11.1 percent decline in print advertising revenue.
Circulation revenue grew marginally to $211.5 million, helped mainly by a 14.4 percent increase in revenue from digital-only subscription products.
"Digital is the main growth area. But where we can invest in what I call 'islands of growth' or 'segments of growth' in print side, we will do that," Chief Executive Mark Thompson told Reuters, citing the recently launched Men's style segment and the re-launch of the New York Times Magazine. Continued...