NY Times swings to profit as online subscriptions rise

The New York Times Co. Swung to profit in the third quarter as it boosted digital subscribers and kept a lid on operating costs, earnings results showed today.
The profit for the prestigious daily struggling with a rapidly changing media industry amounted to $9.4 million, compared with a loss of USD 12.5 million in the same period a year ago.
Revenues edged up 0.7 per cent from last year to $367 million.
The Times, which is aiming to boost its digital audience as print readership declines, said it added 51,000 net online subscriptions in the quarter, but its ad revenues -- both from digital and print -- declined.

"This was a strong quarter for The New York Times Company. We achieved significant growth in adjusted operating profit with strength across many areas of our business," said chief executive Mark Thompson.
"Moving forward, our focus remains on rapidly growing our digital business and maintaining the long-term strength and viability of our print operation."

Thompson said the gains in online subscribers bring the total number of paid digital-only subscribers to 1,041,000.
"This is the largest number of net subscribers we have added in a quarter since the fourth quarter of 2012, evidence of our ability to continue to grow our digital subscriber count more than four years after the launch of our pay model and of the high demand for our digital journalism," he added.

The results showed circulation revenue from digital-only subscriptions rose 13.8 per cent year-over-year to $48.6 million.
Third-quarter print advertising revenue fell 0.9 per cent while digital advertising revenue dropped five percent. Digital accounted to 27 percent of total ad revenues.
The company cut operating costs 7.6 percent from a year ago, in part due to lower severance costs and dips in printing and distribution expenses.