NYTCO Flat At Year End, Circ Revenues Dominate

In any other industry, a flat quarter and year is cause for concern. Against the backdrop of continuing declines in the newspaper business generally, it’s practically a cause for celebration.

The New York Times Company announced that total revenues were flat in the fourth quarter, at $444.7 million, and down less than 1% for the year, to $1.58 billion.

Circulation revenues now contribute more to NYTCO’s bottom line than advertising, with a growing proportion of this coming from digital subscriptions. Total circ revenues increased 1.3% from $210.6 million in the fourth quarter of 2014 to $213.3 million in the fourth quarter of 2015.

Ad revenues slid 1.3% from $207.6 million to $204.8 million. In proportional terms, circ contributed 48% of total revenues in the most recent quarter, while ads fell to 46%.

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For the full year, total circ revenues increased 1% from $836.8 million to $845.5 million, while ad revenues slipped 3.6% from $662.3 million to $638.7 million. In proportional terms, circ revenues rose from 52.7% of the total to 53.5%, while ads fell from 41.7% to 40%.

Other revenues increased 6.3% from $89.4 million to $95 million.

Digital ad revenues rose 10.6% to $69.9 million in the fourth quarter, while print ad revenues fell 6.6% to $134.9 million. For the full year, print ads decreased 8% to $441.6 million while digital ads grew 8.2% to $197.1 million. In proportional terms, digital ads increased from 27.5% of total ad revenues in 2014 to 30.9% in 2015.

Digital subscriptions, which have formed a core part of NYTCO’s growth strategy and loom even larger going forward, continued to grow, with a net addition of 53,000 digital-only subscribers in the fourth quarter, for a total 1,094,000 at the end of the year. In the year-over-year comparison, that’s up from 912,000 at the end of 2014.

Separately, newspaper publisher Lee Enterprises reported that total revenues for the first quarter of its fiscal year 2016 fell 5% to $168.4 million. Lee’s advertising and marketing services revenues fell 8.8% to $105.6 million, with retail ads down 8.3%, classifieds down 13.4%, and national ads down 5.7%.

Digital ad revenues rose 7.2%, contributing over one fifth of Lee’s total ad revenues in the quarter.

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