The US-based media company, New York Times Co, releases its quarterly earnings’ report on Wednesday, the 7th of August 2019, which falls short of a Wall St. estimate, raising alarms of a sharp decline in digital ad market this year, that in effect, jolted its share prices down to 12 percent after falling as much 18.86 percent during pre-market trading.
Nonetheless, Wednesday’s (August 4th) forecast of the New York Times comes forth after the NY-based information tycoon had expanded its efforts to make money out of digital subscription aimed at countering a relentless fall of its paper view.
In point of fact, Wednesday’s whacking loss was almost entirely catalyzed by a New York Times comment that the information behemoth had been bracing for a sharp downturn at is digital advertising revenue which might witness a high-single digit percentage fall in its revenues generated by digital advertisements.
Meanwhile, expressing a worriment outlook over the Newspaper’s digital Advertisement and subscription growth, New York Times CEO, Mark Thompson said in a post-earnings’ call on Wednesday (August 7th), “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.
” According to New York Times Wednesday’s (August 7th) quarterly earnings’ report for Q2, 2019, the NY-based newspaper, one of the largest in terms of daily views, posted a revenue-surge of 5 percent to $436.3 million, slightly missing an analysts’ estimate of $438.7 million.
Nevertheless, followed by Thompson’s dovish forecast for digital ad industry, NYSE-listed Class A shares of New York Times Co., rounds off Wednesday’s (August 7th) market with a mass-scale muzzle of 12.15 percent to $31.25 a share after falling as much as 18.26 percent to $28.86 during morning US trading hours, a level never seen since February this year.