• by Erik Sass  @eriksass1, October 30, 2014

The New York Times Co. saw total revenues increase 0.8% from $361.7 million in the third quarter of 2013 to $364.7 million in the third quarter of 2014, the company announced this week, crediting the gain to strong growth in digital advertising and circulation revenues, which more than offset continuing declines in print advertising.

Circulation revenues rose 1.3% from $204.2 million to $206.7 million, due mostly to The New York Times’ digital subscription sales, which rose 13.3% to $42.8 million over the same period.

The total number of digital subscribers increased 5.3% from 831,000 at the end of the second quarter to 875,000 at the end of the third quarter, the company said. The latter figure represents a more than 20% increase compared to the end of the third quarter of 2013.

Total advertising revenues were basically flat at $138 million in the third quarter, as digital advertising jumped 16.5% to $38.2 million and print advertising slipped 5.3% -- canceling out the digital gains. Turning to specific categories, national advertising revenues fell 1.9% to $107.6 million, but retail was up 10.1% to $16.7 million and classifieds rose 3.7% to $13.6 million.

The growth in digital subscribers is particularly encouraging, representing an acceleration from the 39,000 net additions in the first quarter of this year and the 32,000 net additions in the second quarter.

Nonetheless, it appears the number of new subscriber additions in the third quarter fell short of expectations, in light of statements by publisher Arthur Sulzberger Jr., CEO Mark Thompson, and Editor in Chief Dean Baquet earlier this month, when the company announced it would shutter the new NYT Opinion app -- part of a push to introduce new digital subscription products at different price points in the hopes of recruiting new subscribers.

Baquet noted that “our new products are not achieving the business success we expected, even though they are journalistic sensations.” At the same time, the company revealed plans to cut its newsroom staff by 100 positions, or around 7.5% of the total.