NY Times' (NYT) Advertising Revenues Likely To Remain Soft
Zacks Investment Research | Oct 13, 2019 10:20PM ET
Advertising remains a significant source of revenue for The New York Times Company (NYSE:NYT) . The U.S. newspaper publishing industry has been grappling with declining print readership and advertising revenues for a quite long time now. Readers’ preference for accessing news online, mostly free, has made the industry’s print-advertising model increasingly redundant.
Although, the company's total advertising revenue improved 1.3% year over year during the second quarter of 2019, management expects the same to decline in the high-single digits during the third quarter. Print advertising revenue fell 8% in the quarter under review, following a decline of 11.9% in the preceding quarter.
Further, management’s announcement that the second half of 2019 is likely to be challenging for digital advertising as a result of comparisons against sturdy performance in the prior-year period was also not well received by investors. The company expects digital advertising revenue to fall in the high-single digits during the third quarter.
As a result of above, shares of this Zacks Rank #4 (Sell) company have fallen roughly 18.4% compared with Zacks Investment Research
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