The Times’ bundling of key news stories with digital content ranging from games and sports helped it add 300,000 digital-only subscribers in the quarter, up from 210,000 in the third quarter
The New York Times missed quarterly revenue expectations on Wednesday after ad sales fell, partly due to geopolitical events, sending shares down more than 8%.
An uncertain economy has led advertisers to scale back marketing budgets and cling to safe havens like Meta, while readers are also cutting back on subscriptions as they try to keep costs in check.
Marketers don’t want to place their content next to news driven by current events, including the conflict in the Middle East, the company said.
Advertising revenue fell 8.4% to $164.1 million in the fourth quarter, below estimates of $177 million, according to LSEG data.
“We continue to experience limited visibility in the advertising market, especially when it comes to the continued decline in print,” said Chief Financial Officer William Bardeen.
The publisher reported revenue of $676.2 million for the quarter, missing estimates of $679.24 million. Adjusted earnings of 70 cents per share exceeded expectations.
The Times’ bundling of key news stories with digital content ranging from games and sports helped it add 300,000 digital-only subscribers in the quarter, up from 210,000 in the third quarter.
In what has been a challenging year in the advertising market for publishers, companies including Business Insider and the Los Angeles Times have resorted to firing journalists, while the Washington Post had said it plans to offer voluntary separation packages.
For the first quarter, the company forecasts that digital advertising revenue will increase by a low to high single-digit percentage, while total advertising revenue is expected to decline by mid-single digits.
Businesses are likely to see a surge in advertising spending ahead of the November presidential election in the United States, with spending on political advertising expected to rise 30% this year compared to the last election in 2020, according to data from research agency Insider Intelligence.
First print: February 8, 2024 | 12:36 pm IST
