NY Times profit tops estimates on digital subscriber gains
New York Times Co., publisher of the namesake newspaper and owner of The Boston Globe, topped analysts’ estimates for third-quarter earnings as online subscriptions helped boost circulation.
Earnings per share, excluding some items, fell to 5 cents, the New York-based company said in a statement today. That compared with the average estimate of 3 cents from analysts in a Bloomberg survey. Revenue fell 3.1 percent to $537.2 million. Analysts had projected $540.5 million.
Times Co., based in New York, is trying to boost digital revenue to offset declines in traditional print revenue. The company in March introduced a Web-based subscription model at the New York Times, which requires readers who view more than 20 articles per month to pay for access to the site’s content.
“The big wildcard has been what is happening with the digital subscribers,’’ Edward Atorino, an analyst at New York- based Benchmark Co., said in an interview before earnings were released. “They are getting all of these new revenues from digital.’’
Times Co. said it had 324,000 subscribers for the new service at the end of the third quarter, compared with the 224,000 subscribers at the end of the second quarter. Its Boston Globe newspaper started a similar paid online model this week.
Total advertising revenue slid 8.8 percent, while circulation revenue increased 3.4 percent.
Times Co. reported net income of $15.7 million, or 10 cents a share, compared with a loss of $4.3 million, or 3 cents, a year earlier.
Times Co. fell 5.2 percent to $6.52 at the close in New York yesterday. The stock has declined 33 percent this year.
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