The New York Times Co. posted a 78.5 percent increase in second-quarter profit Thursday, helped by fewer costs and an uptick in digital advertising revenue.
During the quarter, the newspaper registered a 78.5 percent gain in net income of $16.4 million, or 10 cents a diluted share compared with year ago income of $9.2 million, or 6 cents a share. Adjusted EPS totaled 13 cents. Shrinking print advertising revenue weighed down total revenues, which slid 1.5 percent to $382.9 million from $388.7 million.
Wall Street expected 11 cents a diluted share on revenue of $383.5 million.
“Cost declines outpaced the decrease in overall revenues, which was primarily driven by continued pressure on print advertising, and led to strong adjusted operating profit growth in the quarter,” said Mark Thompson, president and chief executive officer. “Expense management will remain a top priority as we head into the second half of 2015, although our emphasis on digital investment and execution is also more intense than ever.”
Total costs dipped 4.9 percent to $344.8 million in the quarter.
Thompson said The Times surpassed the one-million digital-subscriber milestone last week. Overall advertising revenues declined 5.5 percent to $148.6 million, as print advertising declined 12.8 percent, marking a continuation of the trend in print ad declines. Digital revenue, however, rose 14 percent in the quarter, with double-digit year-over-year growth in both digital advertising and subscription revenue.
On the business side, Thompson pointed to potential growth drivers, offering:
“We recently initiated several important relationships — with Apple, Facebook and Starbucks — all of which we believe will enable us to reach new audiences for our journalism as well as provide incremental revenue.”