News Column

The New York Times Company Reports 2014 First-Quarter Results

May 10, 2014



By a News Reporter-Staff News Editor at Investment Weekly News -- The New York Times Company (NYSE:NYT) announced first-quarter 2014 diluted earnings per share from continuing operations of $.02 compared with $.04 in the same period of 2013. Adjusted diluted earnings per share from continuing operations (as discussed below) were $.07 in the first quarter of 2014 compared with $.08 in the first quarter of 2013.

The Company had an operating profit of $22.1 million in the first quarter of 2014 compared with $28.1 million in the same period of 2013, with the decline mainly resulting from investments associated with the Company's strategic growth initiatives. Adjusted operating profit was $56.6 million in the first quarter of 2014 compared with $57.1 million in the first quarter of 2013.

Total revenues increased 2.6 percent in the first quarter of 2014, with advertising revenues up 3.4 percent and circulation revenues up 2.1 percent. The Company added more net digital subscribers in the first quarter of 2014 than in any quarter in 2013. The total number of paid digital-only subscribers at the end of the first quarter was approximately 799,000, an increase of 39,000 compared with the end of the fourth quarter of 2013.

"2014 is off to a good start, with revenue growth across the board in the first quarter followed by the launch of new digital subscription products at the beginning of April," said Mark Thompson, president and chief executive officer. "For the first time in several years, we saw quarterly growth in both print and digital advertising revenues, with total advertising revenues increasing by more than 3 percent year-over-year. We're pleased with this result, which we believe demonstrates the progress we are making in both performance and innovation in advertising. Paid Posts, our native advertising initiative, launched very successfully during the quarter. However, we are certainly not claiming victory in advertising yet; we expect continued month-to-month volatility and recognize that we will face some significantly tougher year-on-year comparisons as the year goes on.

"Just after the quarter's end we began the rollout of NYT Now and Times Premier, expanding the target market for our digital products and increasing our ability to monetize our unparalleled journalism and features across a more comprehensive spectrum of current and potential subscribers. Our new mobile product, NYT Now, in particular is being embraced by the market. As we have said previously, we expect these products to take some time to ramp up, but we are pleased with the reception thus far and by the continued strength of our core digital subscription packages, which grew by 18% year-over-year in Q1." Comparisons Unless otherwise noted, all comparisons are for the first quarter of 2014 to the first quarter of 2013. The results of the New England Media Group (NEMG), which was sold at the beginning of the fourth quarter of 2013, are reported within discontinued operations in 2013.

This release presents certain non-GAAP financial measures, including diluted earnings per share from continuing operations excluding severance, non-operating retirement costs and a special item (or adjusted diluted earnings per share from continuing operations); operating profit before depreciation, amortization, severance, non-operating retirement costs and a special item (or adjusted operating profit); and operating costs before depreciation, amortization, severance and non-operating retirement costs (or adjusted operating costs). The exhibits include a discussion of management's reasons for the presentation of these non-GAAP financial measures and reconciliations to the most comparable GAAP financial measures, as well as an explanation of non-operating retirement costs, which is presented for the first time in this release.

Keywords for this news article include: Finance, Advertising, The New York Times Company.

Our reports deliver fact-based news of research and discoveries from around the world. Copyright 2014, NewsRx LLC


For more stories on investments and markets, please see HispanicBusiness' Finance Channel



Source: Investment Weekly News