Reuters The New York Times Co. fell short of Wall Street estimates for revenue on Wednesday and warned of declines in digital advertising for the rest of the year, sending its shares down 12 percent.
The outlook overshadowed a better-than-expected second-quarter profit, helped by the 167-year old newspaper’s efforts to make money from digital subscribers to counter a relentless decline in readership of its broadsheets.
Those efforts have paid off as the company has added online subscribers at a fast pace in the past few years, also aided by the so-called “Trump bump” — the effect of U.S. President Donald Trump’s attacks on the paper as well as its coverage of his administration.
The company, however, said it now sees digital advertising revenue to fall in the high-single digits percentage, attributing the drop to the timing of some large-scale, multi-month deals.
“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.