The New York Times Company reported a 21.1 percent drop in profits in the second quarter of 2014, which it blamed on less print advertising and investments in new initiatives.
Operating profit fell 64.3 percent to $16.5 million, down from $46.2 million in the previous second quarter. Adjusted operating profit fell 21.1 percent to $55.7 million compared with $70.7 million.
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Earnings per share from continuing operations fell 45.5 percent to $.06 in the second quarter of 2014, down from $.11 in the same period in 2013. They missed the average analyst estimate of 8.5 cents compiled by Thomson Reuters.
Paid subscribers to the company’s digital-only subscription products, e-readers and replica editions came to about 831,000 as of the end of the quarter, an increase of 32,000 subscribers from the end of the second quarter of 2013.
Mark Thompson, the company’s chief executive, said in a conference call with reporters that the company suffered “some loss of momentum” in second-quarter ad sales, but believed the company’s increased spending on digital was important to the “long-term sustainable growth” of the company.
Total revenues fell 0.6 percent to $388.7 million from $391.0 million. Circulation revenues grew 1.4 percent and other revenues increased 7.7 percent, but advertising revenues declined 4.1 percent. Print advertising revenue slipped 6.6 percent, while digital advertising revenue increased 3.4 percent.