Print advertising slogs, but nothing ‘failing’ about Times

Continued from FP1

He has called the press “fake news” and “the enemy of the American People!”

In response, the New York Times launched its “Truth” campaign, including its first TV ad in seven years, urging readers to sign up in order to support its fair and accurate reporting.

“Even the President of the United States was kind enough to draw attention to it,” chief executive Mark Thompson said on a postearnings call with analysts on Wednesday, referring to the campaign.

New York Times’ paid digital-only subscriptions stood at about 2.2 million at the end of the first quarter of 2017, soaring more than 60 per cent from a year earlier, and up 16 per cent from the end of the preceding quarter.

Thompson called the first quarter the “single best quarter for subscriber growth” in the company’s history. But “print advertising remained tough,” he said.

“But it is a testimony to just how far our business has already transitioned towards digital that this steep decline did not stop us from growing our total revenue significantly in the quarter.”

Total revenue rose to 5.1 per cent to $398.8 million, beating the average analyst estimate of $381.96 million, according to Thomson Reuters.

“Helped by tailwinds from the political cycle, digital has been increasingly offsetting the secular declines at the legacy print business,” Barclays analysts wrote in a client note.

Digital advertising revenue, which now makes up about 38 per cent of total ad revenue, rose 18.9 per cent to $49.7 million.

Print advertising revenue continued to fall, down 17.9 per cent to $80.4 million in the first quarter.

The Times has been investing heavily to boost its digital offerings that focus on mobile devices and brand marketing as well as other services to lure readers.

Operating costs rose 4.5 per cent to $367.4 million in the first quarter. It has taken up cost-cutting measures, including layoffs and shutting some Paris operations.

Net income attributable to the company was $13.2 million or eight cents per share, compared with a loss of $8.3 million or five cents per share, a year earlier.

Excluding one-time items, the company earned 11 cents per share, beating the estimate of seven cents.

The newspaper publisher’s shares closed up 12.5 per cent on Wednesday.