At Last: The New York Times Halts Its Advertising Skid
It’s not a world-beating quarter, but the New York Times (NYT) will take it: Advertising revenue for the second quarter was…flat. That hasn’t happened for a long time, and it helped the publisher push overall revenue up a modest 1.2 percent, to $589.6 million, and earnings per share to $0.18, up from $0.08 a year ago.
The quick breakdown: Print ads are still declining and were down 6.1 percent. But that’s better than the 12.3 percent drop the paper recorded in Q1 of this year. And digital ads were up 21.2 percent; digital now represents 26 percent of the company’s ad revenue. Circulation revenue was up 3.2 percent.
Do recall that last year the paper, along with the rest of the media business, was still reeling from the economic meltdown, so these are very weak comps. But, they’re still an improvement.
More on the way, says CEO Janet Robinson, who predicts print ads will move up again in Q3. But she says the paper can’t expect the same bump from digital–she is looking for something “in the mid- to high teens.”
And costs are going to start creeping up, too, due to the “impact of rising newsprint prices, the timing and level of variable compensation, the elimination of certain salary rollbacks, and increased promotional spending and other costs associated with the launch of the NYTimes.com pay model.” [Emphasis added]