New York Times Delivers Mixed Q2 Results

The New York Times Company NYT reported a year-over-year drop in earnings and revenue in the second quarter. While its adjusted EPS is in line with the Street predictions, revenue fell shy of them.

The media firm suffered a loss per share from continuing operations of $0.00 compared with earnings per share of $0.10 in the same quarter of 2015.its adjusted EPS from continuing operations also fell to $0.11 from $0.13 in the second quarter of 2015. However, this was in line with the Street analysts' estimations.

The New York Times' total revenues dipped 2.7 percent to $372.6 million from $382.9 million in the previous year period. This was short of the analysts' predictions of $75.4 million. While circulation revenues grew 3.0 percent, advertising revenues dropped 11.7 percent. Its other revenues also advanced 4.0 percent in the three-month period.

President and CEO, Mark Thompson, commented, "Advertising was tougher in the quarter, particularly on the print side. In digital, we saw very strong growth in mobile, video and virtual reality, branded content and programmatic advertising. These were not enough to offset declines in traditional web display in Q2, which led to an overall decline in digital advertising."

Going forward, the company expects the condition to improve in the second half of the year and expects to deliver strong revenue growth from both digital advertising and our digital consumer business in the third quarter.

However, while providing outlook for the third quarter, the New York Times indicated that its total circulation revenues rate would be similar to that of the second quarter while ad revenues would drop in the mid-single digits.