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President Donald Trump calls this the "New York Times bankrupt," but Thursday's financial results for the third quarter suggest the opposite.
Shares of the New York Times Company
NYT + 7.88%
grew by 6.1% after exceeding the third quarter earnings guidance, which allowed them to achieve a significantly higher pre – market value and keep them on track. a 12-year high.
Earnings for the last quarter fell to $ 25 million, or 15 cents a share, from $ 32.3 million, or 20 cents a share, in the same quarter of the previous year. But the Times is still well above the consensus; Adjusted EPS was 15 cents a share, while the FactSet consensus was 12 cents a share.
Revenues totaled $ 417.3 million, exceeding FactSet's consensus of $ 410 million, up from $ 385.6 million a year ago. Subscription revenues increased 4.5% to $ 257.7 million from $ 246.6 million a year ago, primarily due to the growth in the number of subscriptions to digital-only society. Revenues from all-digital subscriptions increased 18.1% to $ 101.2 million from $ 85.7 million a year ago, driven by a 24% increase in digital subscriptions. this number was 3.1 million, compared with 2.5 million a year earlier.
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Also: Digital revenues start to benefit traditional newspaper companies
Advertising revenues, including both digital and print advertising, also increased. Advertising revenue for the third quarter was $ 121.7 million, up 7.1% from $ 113.6 million a year ago. And while print ad sales declined 0.7%, digital ad sales increased 17.3%.
Reflecting a trend toward growth in its digital products, the Times said it expects a decline in subscription revenues and advertising in the fourth quarter, while waiting for the digital-specific revenue continue to increase.
The Times shares have gained 43% since the beginning of the year, while the S & P 500
SPX, + 0.64%
gained 1.4%. Newspapers face a growing challenge for businesses as Americans consume more and more of their information online. News organizations have struggled to adapt, even though they are turning to Internet-based revenue sources, such as subscriptions and online advertising.
Despite the best efforts in the sector, advertising revenues have been declining for more than 10 years, down 67% between 2005 and 2017, from $ 49.4 billion to $ 16.5 billion, according to data from an analysis conducted by the Pew Research Center in 2018.
It is estimated that weekday newspaper circulation in both digital and print formats decreased by 42% over the same period, from 53.3 million to 30.9 million.
Competitor of Gannett Co. Inc.
GCI + 2.84%
stock fell 14.2% in 2018, Tribune Publishing Co.
TPCO, + 1.06%
fell 13.3% and News Corp.
NWSA, -0.87%
which holds the Wall Street Journal, MarketWatch and Barron's titles, dropped by 19%.
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