New product launches and costs from buyout packages weighed down The New York Times Co.’s third-quarter financials on Thursday, as the company swung to an operating loss.
The Times, which said it would eliminate 100 newsroom jobs and offer buyout packages this month, posted an operating loss of $9 million for the quarter compared with a year-ago profit of $12.9 million. The paper, like many publishers rooted in print products, is beginning to invest more heavily in digital, as it pivots from the weakening print advertising model. The company said it would invest in mobile apps like NYT Now, which contributed to the third-quarter loss.
Accounting for costs, The Times said its adjusted operating profit was $40 million, a $5 million improvement over last year.
For the period, revenues increased 0.8 percent to $364.7 million from $361.7 million. Although the company managed to eke out a small gain, it was not the windfall it had planned for the year, which was marked by the introduction of a handful of new digital subscription products that have yet to take off.
Circulation revenues increased 1.3 percent to $206.7 million, while advertising revenues slid 0.1 percent to $137.9 million and other revenues rose 2.7 percent to $20.1 million.
The Times said print ads fell 5.3 percent, while digital ads rose 16.5 percent to $38.2 million.
The rise in digital ads came from a variety of areas, including native ads and paid posts, according to chief executive and president Mark Thompson.
“Our solid year-to-date digital advertising performance is the result of deliberate execution on our strategic plan, including the introduction of Paid Posts, recent investments in areas such as video, growth on the smartphone platform and the momentum of our restructured advertising team.”