TheStreet.com said it will suspend its third-quarter dividend as the online financial news company looks to cut costs and also reported its second-quarter loss widened slightly as revenue fell.
Nathalie Tadena of Dow Jones Newswires writes, “TheStreet said the dividend suspension will result in quarterly savings of about $900,000. Chairman and Chief Executive Elisabeth DeMarse said the company made ‘great progress’ on the expense side of the business, but noted the macroeconomic environment continues to challenge revenue. The company’s revenue also declined in the prior two periods.
“TheStreet is unusual in the online-news world because it began charging readers for content when it launched in 1996 and has stuck with that strategy while most other news sites focused on free models supported by advertising. The company generates most of its revenue from subscribers, who pay for stock-picking advice and other financial information.
“Subscription services revenue fell 12% in the latest period, while media revenue slumped 27%.
“For the latest period, TheStreet reported a loss of $1.9 million, or six cents a share, compared with a year-earlier loss of $1.7 million, or five cents a share. The latest period included a $1.3 million restructuring change and a $200,000 gain on the disposition of assets. Revenue fell 17% to $12.5 million.”
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