New York Times Profit Drops, Digital Subscriptions Up

The New York Times Co. on Tuesday reported a sharp decrease in profits in lower advertising revenues while digital subscriptions increase, report said.

The Times net profit for the second quarter drops to $9.2 million from $20.1 million in the same period a year ago. The paper’s total revenues fell slightly to $389 million, with circulation revenues up 1.4 percent and ad revenues down 4.1 percent.

Reports said the bottom line was also hurt by higher operating costs, which the company attributed to increased investments in boosting the digital profile of the prestigious newspaper publisher.

Digital

The paper’s digital advertising revenues increase up to 3.4 percent but that failed to offset a 6.6 percent drop in print advertising revenue.

President and Chief executive officer Mark Thompson said they saw a continuing increase in digital advertising and circulation revenues during the said quarter. Thompson added they still have to work more to transform and deliver long-term sustainable revenue growth for the paper.

NYT Apps

The Times reportedly added 32,000 digital subscribers in the quarter with newly released subscription options including NYT Now, NYT Opinion and Times Premier. The NYT Now app is designed for mobile device users while Times Premier is a premium news and information service that adds to the cost of a regular subscription, report said.

Thompson said they were encouraged by the reaction of users of the products, especially the high consumer satisfaction levels with the NYT Now app.

Like other media firms, the Times is shifting its focus from print to digital as it strives to adapt to a decline in readership and competition from other sources of news online, report said.