The American newspaper New York Times announced better-than-expected earnings in the second quarter, but the company has added fewer subscribers to the paid online edition, which led to a 5% drop of its share of pre-trade.
The company added 109,000 subscribers to digital content in the second quarter, compared to 114,000 an year earlier when it offered significant discounts on the annual subscription.
Revenue from online advertising, which accounts for more than a third of the company’s total advertising revenue, has fallen by 7.5% to 51 million USD.
“As we predicted, the quarter was weak for online advertising, but we remain confident that we will return to strong annual growth in the third quarter”, said the CEO of New York Times, Mark John Thompson.
The net profit to be distributed among shareholders increased 51% to 23.6 million USD, or 0.14 USD per share, in the second quarter.
By removing some elements, the profit is 0.17 USD per share, which is above average analysts’ earnings expectations of 0.15 USD.
The revenues in the same period totaled to 414.6 million USD compared to 407.1 million USD in the first quarter, which is above analysts’ earnings expectations of 412.3 million USD.