The New York Times' overall revenue declined .6% in Q2 year over year to $388.7 million; its adjusted operating profit declined drastically from $70.7 million in Q2 2013 to 55.7 million in Q2 2014. Advertising revenues were down 4.1% to $156.3 million year over year, fulfilling a Q1 prediction by CFO James Follo that such revenues would decline. Much of this was driven by weakness in print advertising which decreased 6.6% year over year.
Digital advertising and circulation stemmed the losses somewhat. Digital advertising increased 3.4% to $41.5 million from $40.1 million, and currently accounts for over a quarter of all advertising revenue.
The New York Times added 32,000 digital subscribers in the quarter, 39% more than the growth at the same time last year, for a total of 831,000 subscribers. That includes e-reader subscriptions as well as new products like NYT Now, Times Premier and NYT Opinion.
Growing digital circulation further is an area of focus. “We know that long-term digital revenue growth depends on the reach and depth of engagement of our digital audience…[we] believe we can significantly grow our digital audience, which in turn will contribute to improved digital subscription and advertising monetization,” CEO Mark Thompson said in a statement. (more…)