New York Times cautions of challenging quarter, shares plummeted

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New York Times cautions of challenging quarter, shares plummeted

On Wednesday, the 6th of November 2019, the NY-based American mass media company, New York Times Co. had highlighted a “fairly challenging” quarter ahead over a sharp fall at its advertising revenue, while the publisher had also forecasted further plunge due to some of the changes in its advertising platform, which in effect had dragged down the NY-based mass media company’s shares down by 9 per cent in the pre-market trading.

Aside from that, the New York Times Co. had also added that it would not be allowing an automated sell-off of advertising spaces in its apps anymore, while the 168-year-old newspaper had forecasted its digital revenue to fall in a “single-digit-million” figure as early as by January 2020.

Meanwhile, adding that the newspaper’s digital advertising platform alongside a launch of its $2 per week digital subscription for its newspaper version had performed slightly better-than-expected in Q3, 2019, the New York Times Co.

CEO Mark Thomson said in a post-earnings’ call with the analysts, “... this will be more than made up by gains in engagement and a higher propensity by app users, both to subscribe and retain. ” On top of that, according to the century-old American mass media company’s Q3, 2019, earnings’ report released on Wednesday (November 6th), the company had posted a slight rise in operating profit to $428.5 million from a $417.3 million on a year-on-year basis, failing to reach an analysts’ estimate of $429.1 million, IBES data from Refinitiv revealed.