New York Times misses revenue estimates as ad spending slows
THE New York Times missed quarterly revenue estimates on Wednesday (May 10) as recession-wary businesses slashed spending on digital ads and readers reconsidered paid subscriptions.
High inflation and rising interest rates have in recent months squeezed marketing budgets across industries, hitting the earnings of ad-dependent companies such as Snap and Pinterest.
Consumers have also pulled back on spending, blunting gains from the publisher’s plan to boost revenue by bundling its core news reports with digital content ranging from podcasts to cooking recipes and games.
The paper reported revenue of US$560.7 million for the first quarter, compared with analysts’ estimates of US$571 million, according to Refinitiv data.
Its digital advertising revenue decreased nearly 9 per cent to US$61.3 million.
The publisher added 190,000 digital-only subscribers in the first quarter, compared with 240,000 in the prior quarter. It has a goal of 15 million subscribers by 2027.
In a separate release, the paper said it had appointed strategy head William Bardeen as its chief financial officer, replacing Roland Caputo who had announced his retirement in December. REUTERS
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