The New York Times Co. said Wednesday it expects to show a loss for the third quarter, with newspaper advertising still in decline.
Unlike the prior quarter, the Times Co. said that growth in digital ad sales will not make up for declines on the print side. Making matters worse, the company expects a drop in revenue from subscription and newsstand sales.
All of which adds urgency to the company's efforts to find greater sources of revenue outside of printed newspapers. Its flagship daily is set to impose fees for accessing material on its website, NYTimes.com, beginning early next year. And the company has been working to expand its audience on mobile gadgets like the iPad, where it also hopes to find both subscription and advertising revenue.
The Times Co., which also publishes The Boston Globe, International Herald Tribune and 15 other dailies, expects an overall revenue decline for the third quarter of 2 percent to 3 percent.
Counting severance costs and one-time accounting adjustments, the company said that should lead to a loss of 5 cents to 7 cents per share. Stripping out items, it expects to earn 3 cents to 5 cents, which is roughly in line with analysts' expectations, according to Thomson Reuters.
The Times Co. said print advertising revenue will show a decline of about 5 percent from the same quarter a year ago, just slightly better than the 6 percent decline in the second quarter.
However, digital ad sales are not growing as quickly as they had. Revenue from the company's Web properties, which include About.com along with its news sites, climbed 14 percent after a 21 percent jump the quarter before.
And because last newsstand price hike at the Times and The Boston Globe happened more than a year ago, circulation revenue is likely to show a decline of 5 percent, the company said.
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