The New York Times Company is growing subscriptions on digital platforms, but still recognized an $8.3 million loss in the first quarter of 2016.
The newspaper of record reported a Q1 diluted loss per share of $.05 compared with a loss of $.09 in the same period of 2015. Adjusted diluted earnings per share (EPS) from continuing operations were $.10 in the first quarter of 2016 compared with $.11 in the first quarter of 2015. In other words, those adjustments paint a brighter picture, especially considering that Wall Street media analysts had forecast earnings coming in at 8 cents apiece this time around.
The Times also bested consensus estimates for sales, which set the benchmark at $$377.30 million. Though the paper saw a 1.2 percent overall revenue decrease, its actual $379.5 million still did the trick there.
Circulation revenues increased 2.4 percent, while advertising revenues declined 6.8 percent and other revenues increased 1.4 percent.
Operating profit grew to $27.9 million in the first quarter of 2016 compared with a loss of $11.1 million in the same period of 2015, largely as a result of a special pension charge incurred in 2015.
Adjusted operating profit was $51.5 million in Q1 of 2016, compared with $59.2 million in the first quarter of 2015. The decline was driven by lower advertising revenues and higher costs, which were partially offset by higher circulation and other revenues.
“The rate at which we are adding digital subscriptions continues to accelerate. This quarter, we added 67,000 net digital-only subscriptions to our news products, more quarterly additions than we have had in over three years, a 21 percent increase year-over-year and a real achievement as our pay model reaches its fifth anniversary,” president and CEO Mark Thompson said in a statement accompanying the financials.
“We have continued to prioritize deepening the level of engagement of our readers with Times content and this effort, along with the application of new consumer marketing tactics, has led to an increase in new subscribers and improved retention of existing ones,” Thompson said.
New York Times shares have fallen about 5 percent since this time last year.
Senior management will hold an investor call to discuss the financial results at 11 a.m. ET on Tuesday.