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| New York Times Co.’s Decline in Print Advertising Tempered by Digital Gains | New York Times Co.’s Decline in Print Advertising Tempered by Digital Gains |
| (35 minutes later) | |
| Precipitous declines in print advertising rocked the newspaper industry last year. And while The New York Times Company recorded significant growth in subscriptions and promising increases in digital advertising, it nevertheless has not avoided the inevitable. | Precipitous declines in print advertising rocked the newspaper industry last year. And while The New York Times Company recorded significant growth in subscriptions and promising increases in digital advertising, it nevertheless has not avoided the inevitable. |
| The company said on Thursday that its print advertising revenue in 2016 fell 16 percent, driving a 9 percent drop in total advertising revenue. For the quarter, print advertising revenue declined 20 percent. | The company said on Thursday that its print advertising revenue in 2016 fell 16 percent, driving a 9 percent drop in total advertising revenue. For the quarter, print advertising revenue declined 20 percent. |
| The story on the digital side was positive, underscoring the diverging financial narratives for print and digital that have emerged at the company. | The story on the digital side was positive, underscoring the diverging financial narratives for print and digital that have emerged at the company. |
| Digital advertising revenue rose 6 percent last year, to $209 million. The Times Company added 514,000 net digital-only subscriptions for its news products during the year, bringing its total to 1.6 million. Buoyed by readers’ intense interest in the presidential election, the company added 276,000 net digital-only subscriptions to its news products in the last three months of the year, more additions than in 2013 and 2014 combined. | |
| Including print and crossword product subscriptions, The New York Times now has more than three million total paid subscribers, a milestone that aligns with the company’s commitment to a subscription-based revenue model that is less reliant on the advertising revenue derived from page views and clicks. | |
| As for many other legacy print companies trying to adapt to an increasingly digital world, these have been challenging times for The New York Times. Last month, The Times released an internal report that called for swift changes in the newsroom, including more staff training, a commitment to hiring journalists with wider-ranging skills and an elimination of duplicative layers of editing. | As for many other legacy print companies trying to adapt to an increasingly digital world, these have been challenging times for The New York Times. Last month, The Times released an internal report that called for swift changes in the newsroom, including more staff training, a commitment to hiring journalists with wider-ranging skills and an elimination of duplicative layers of editing. |
| That has left employees bracing for staff reductions that newsroom leaders said could be announced in the next several weeks. | That has left employees bracing for staff reductions that newsroom leaders said could be announced in the next several weeks. |
| Despite positive developments on the digital side, the overall financial results announced on Thursday are unlikely to assuage the tangible anxiety among journalists at The Times. | Despite positive developments on the digital side, the overall financial results announced on Thursday are unlikely to assuage the tangible anxiety among journalists at The Times. |
| Total revenue fell about 2 percent for the year, to $1.6 billion, and 1 percent in the quarter, to $440 million. | Total revenue fell about 2 percent for the year, to $1.6 billion, and 1 percent in the quarter, to $440 million. |
| Adjusted operating profit, the company’s preferred method for assessing performance, fell to $241 million last year, from $289 million in 2015. Operating profit dropped to $102 million, from $137 million. | Adjusted operating profit, the company’s preferred method for assessing performance, fell to $241 million last year, from $289 million in 2015. Operating profit dropped to $102 million, from $137 million. |
| For the quarter, adjusted operating profit was $96 million, compared with $118 million in the fourth quarter in 2015. Operating profit fell to $56 million, from $88 million. | For the quarter, adjusted operating profit was $96 million, compared with $118 million in the fourth quarter in 2015. Operating profit fell to $56 million, from $88 million. |
| On a more positive note, circulation revenue rose 3 percent in 2016, to $881 million. Revenue from the company’s digital-only subscriptions jumped 17 percent in 2016, to $233 million. | On a more positive note, circulation revenue rose 3 percent in 2016, to $881 million. Revenue from the company’s digital-only subscriptions jumped 17 percent in 2016, to $233 million. |
| For the quarter, circulation revenue increased 5 percent, to $226 million, and digital-only subscription revenue rose 22 percent, to $64 million. Digital advertising revenue rose 11 percent. | For the quarter, circulation revenue increased 5 percent, to $226 million, and digital-only subscription revenue rose 22 percent, to $64 million. Digital advertising revenue rose 11 percent. |
| In an earnings call on Thursday, Mark Thompson, chief executive of the Times Company, called digital growth “unprecedented” and expressed optimism in the company’s subscription-first growth strategy. He also used the call to needle President Trump over his claims that the publication’s audience and subscriber numbers were “dwindling.” | In an earnings call on Thursday, Mark Thompson, chief executive of the Times Company, called digital growth “unprecedented” and expressed optimism in the company’s subscription-first growth strategy. He also used the call to needle President Trump over his claims that the publication’s audience and subscriber numbers were “dwindling.” |
| “Not so much, Mr. President,” Mr. Thompson said. “We had spectacular audiences in the quarter.” | “Not so much, Mr. President,” Mr. Thompson said. “We had spectacular audiences in the quarter.” |
| Times executives said the company expected circulation revenues to increase about 6 percent in the first quarter of 2017 compared to the same quarter last year. The company also expected to see about 200,000 net additional subscriptions to its digital news products in the first quarter. | Times executives said the company expected circulation revenues to increase about 6 percent in the first quarter of 2017 compared to the same quarter last year. The company also expected to see about 200,000 net additional subscriptions to its digital news products in the first quarter. |
| Total advertising revenue is forecast to fall in the high single digits, though digital advertising revenue is expected to increase 10 to 15 percent. | Total advertising revenue is forecast to fall in the high single digits, though digital advertising revenue is expected to increase 10 to 15 percent. |
| On Wednesday, The Times announced the promotion of Clifford J. Levy, a top digital editor, to the position of deputy managing editor. On Thursday, the company announced a partnership with Snapchat to create a new daily edition for the app’s Discover section, with the aim of gaining exposure to a younger audience. | On Wednesday, The Times announced the promotion of Clifford J. Levy, a top digital editor, to the position of deputy managing editor. On Thursday, the company announced a partnership with Snapchat to create a new daily edition for the app’s Discover section, with the aim of gaining exposure to a younger audience. |