Multimedia news and information company New York Times Co. (NYT) on Thursday reported significantly higher earnings for its first quarter, benefited by the sale of its Regional Media Group as well as higher circulation revenues.
For its first quarter, net income attributable to stockholders surged to $42.13 million or $0.28 per share from last year's $5.42 million or $0.04 per share.
The latest quarter results included income from discontinued operations of $29.07 million or $0.19 per share, higher than $3.15 million or $0.02 per share. Earnings per share from continuing operations climbed to $0.09 from $0.02 a year earlier.
Excluding severance and certain special items, earnings per share from continuing operations were $0.08, compared with zero cents a year ago.
On average, seven analysts polled by Thomson Reuters expected earnings of $0.02 per share for the quarter. Such estimates typically exclude special items.
Total revenues edged down 0.3 percent to $499.38 million from $500.66 million last year. Analysts estimates revenues of $500.34 million.
In the quarter, advertising revenues decreased 8.1 percent, while circulation revenues increased 9.7 percent led by a 13 percent growth at The New York Times Media Group.
The company noted that print advertising revenues decreased 7.2 percent and digital advertising revenues decreased 10.3 percent largely due to declines at the About Group.
Arthur Sulzberger, Jr., chairman and chief executive officer, said, "We continue to execute on our strategy and our improved results reflect the ongoing digital transformation of our Company."
Looking ahead, for the second quarter, the company projects that advertising revenue trends for the News Media Group would be similar to the first-quarter level, while at the About Group advertising revenue trends are expected to improve modestly.
Total circulation revenues are projected to increase in the high-single digits in the second quarter because of growth in digital subscriptions as well as from the print price increases implemented in the first and second quarters of 2012.
by RTT Staff Writer
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