New York Times Co. (NYT) reported a profit in the third-quarter 2015. It expects total circulation revenues for the fourth quarter of 2015 to increase at a rate similar to that of the third quarter of 2015.
"This was a strong quarter for The New York Times Company. We achieved significant growth in adjusted operating profit with strength across many areas of our business," said Mark Thompson, president and chief executive officer.
Total advertising revenues in the fourth quarter of 2015 are expected to decrease in the mid-single digits compared with the fourth quarter of 2014, while digital advertising is expected to increase in the mid-single digits.
Operating costs are expected to decrease in the low to mid-single digits in the fourth quarter of 2015 compared with the fourth quarter of 2014, while adjusted operating costs are expected to decline in the low-single digits.
Net income attributable to common stockholders was $9.42 million, compared to a loss of $12.50 million in the same quarter last year. Earnings per share was $0.06 compared with a loss of $0.08 in the same period of 2014.
Operating costs decreased 7.6 percent in the third quarter to $345.5 million from $373.8 million. This decrease mainly resulted from declines in severance, depreciation and amortization, print distribution efficiencies, and lower raw materials and outside printing costs. Adjusted operating costs decreased 1.5 percent in the third quarter to $319.8 million from $324.7 million.
Adjusted earnings per share from continuing operations of $0.09 in the third quarter of 2015 compared with $0.03 in the third quarter of 2014. Analysts polled by Thomson Reuters expected the company to report earnings of $0.06 per share for the quarter. Analysts' estimates typically exclude special items.
Adjusted operating profit grew to $47.6 million in the third quarter of 2015 from $40.0 million in the third quarter of 2014. This increase was driven by revenue growth combined with cost reductions. Operating profit was $21.9 million in the third quarter of 2015 compared with a loss of $9.0 million in the same period of 2014.
The New York Times said that it added 51,000 net digital subscribers, bringing the total number of paid digital-only subscribers to 1,041,000 at the end of the third-quarter. This was the largest number of net subscribers we have added in a quarter since fourth-quarter 2012.
Total revenues for the third quarter of 2015 increased 0.7 percent to $367.4 million from $364.7 million. Wall Street expected revenues of $364.67 million for the quarter. Circulation and other revenues increased 1.1 percent and 16.2 percent, respectively, while advertising revenues declined 2.1 percent.
Third-quarter print advertising revenue decreased 0.9 percent while digital advertising revenue decreased 5.0 percent. Digital advertising revenue was $36.5 million, or 27.0 percent of total Company advertising revenues, compared with $38.4 million, or 27.8 percent, in the 2014 third quarter.
Other revenues rose 16.2 percent in the third quarter primarily due to increases in revenues from the Company's NYT Live business (which includes conferences and live events), Crossword product and rental income.
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