New York Times shares drop
Reuters is reporting that the New York Times Co. missed Wall Street estimates for revenue on Wednesday and signaled weakness in digital advertising for the rest of the year, sending its shares down 15 percent.
“We expect the second half of 2019 to be somewhat more challenging for digital advertising than the first half, with this year’s revenue coming against our large gains in the third and fourth quarters of 2018,” Chief Executive Officer Mark Thompson said in a statement.
The outlook overshadowed a better-than-expected second-quarter profit, which was helped by higher digital subscribers amid a drop in revenue from print advertising.
The Times said it added 197,000 digital-only subscribers in the quarter, pushing total subscriptions to 3.78 million. Its digital advertising revenue rose by about 14 percent.
Print advertising revenue fell eight percent in the quarter.