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The newspaper company said that revenue was up almost 1 percent to $449 million. Still, the result missed the analysts' consensus estimate of $479.23 million, according to Thomson Reuters I/B/E/S. Adjusting for severance costs and other special items, the company reported a quarterly loss of 1 cent per share, well below expectations of earnings of 8 cents per share.
The slight uptick in revenue was due to a 7.4 percent rise in circulation revenue helped by the company's digital subscription plans. But as the company tries to rely more on circulation for its revenue, advertising sales are in a persistent slump.
"It wasn't a nice quarter on revenue," said Edward Atorino, an analyst with Benchmark Co. "The advertising numbers look terrible. I thought they might do a little better. They are caught up in the downslide like everybody else."
The stock dropped 12 percent to $9.37 in morning trade.
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The company attributed the declines to the "challenging economic environment, ongoing secular trends and an increasingly complex and fragmented digital advertising marketplace."
| And the fact that they cater to a 'more selective' audience these days... |
The trend of declining national ad revenue was apparent at Gannett Co, the largest newspaper chain in the United States, and its national newspaper USA Today, a competitor to the Times. While Gannett turned in better-than-expected results last week, national advertising, primarily through USA Today, was down almost 8 percent at its U.S. newspapers.
The clampdown by advertisers is expected at the New York Times into the next quarter - typically the strongest one for the newspaper industry as it's buoyed by holiday spending.
The company said it expects the same advertising trends in the fourth quarter as the third period.
Once a sprawling media conglomerate, The New York Times has