The New York Times Co. today reported $33M in Q3 operating profit compared to $8.9M a year ago due to higher digital subscription revenues and lower severance costs, which offset the continued decline in print ad sales.
Revenues advanced 6.1 percent to $385.6M, sparked by a 13.6 percent gain in subscription sales. Print advertising revenues tumbled 9.0 percent to $113.6M.
The company counted 2.5M paid digital-only subscribers as of the Sept. 30 end of Q3. That’s a net increase of 154K subs from the end of Q2 and a 59.1 percent hike from a year ago.
Digital advertising, which accounts for 43.3 percent of total ad revenues, grew 10.8 percent to $49.2M from the '16 period, driven by smartphone, programmatic and branded content revenues.
The 20 percent drop in print revenues was due to a fall-off of display advertising in the real estate, luxury, travel, media, technology and telecom categories.
CEO Mark Thompson anticipates high-teen growth in subscription revenues and high single-digit decline in ad revenues during Q4.