New York Times revenue misses as print ad sales fall again
By Arathy S Nair and Abhirup Roy
(Reuters) - New York Times Co reported lower-than-expected quarterly revenue as its print advertising sales fell for the fourth straight quarter.
Shares of the company, which also forecast a decline in its current-quarter ad revenue, fell as much as 6 percent on Thursday.
Newspaper and magazine publishers are struggling to arrest the fall in their print ad revenue, caused by advertisers' increasing preference for digital platforms as readers turn to smartphones and tablets.
The shift to digital platforms has also hurt U.S. cable companies, with Viacom Inc, Walt Disney, Twenty-First Century Fox Inc, Discovery Communications Inc and Time Warner Inc reporting disappointing quarterly numbers.
New York Times' print ad revenue fell 12.8 percent in the second quarter.
"I think overcoming the decline in print is sort of like trying to overcome gravity," FBR Capital Markets analyst William Bird said.
New York Times' advertising revenue fell 5.5 percent to $148.6 million. The company said it expected a mid-single digit percentage decline in its ad revenue in the current quarter.
However, New York Times' digital ad revenue rose 14.2 percent to $48.3 million, accounting for about a third of its total ad revenue. Continued...