NYTCO Print Revs Tumble, But Digital Grows

The New York Times Co. saw total revenues fall 1.55% from $389 million in the second quarter of 2014 to $383 million in the second quarter of 2015, due mostly to the continuing drop in its print advertising business.

But it wasn’t all bad news, as the company’s digital subscription base continued to grow, fueling a rise in circulation revenues. Digital ad revenues also increased.

NYTCO’s total print ad revenues tumbled 12.8%, contributing to a drop of 5.5% in overall advertising revenues, from $157.2 million to $148.6 million. Display ad revenue fell 4% to $135.5 million, while classifieds were down 16.3% to $8.3 million.

These decreases were partially offset by a 14.2% increase in digital ad revenues over this period, from $42.3 million to $48.3 million. In proportional terms, digital ad revenues made up 32.5% of the company’s total ad business in the second quarter of 2015, up from 26.9% in the second quarter of 2014.

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NYTCO CEO Mark Thompson attributed the growth in digital ad revenues to increased demand for video, native and mobile ads.

Circulation revenues increased 0.9% from $210 million to $212 million, reflecting the company’s efforts to expand its digital subscription base. NYTCO added 33,000 net digital subscribers during the second quarter, bringing its total number of digital-only subscribers to 990,000 at the end of the quarter. The net addition is higher than the comparable figures for the second quarters of 2013 and 2014.

Earlier this week, the NYT announced plans to launch a new mobile ad solution today focusing on key moments in users’ days. The “Mobile Moments” product will feature short stories called “screenplays” created by NYT’s commercial content group, T-Brand.

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