New York Times forecasts third-quarter ad revenue ahead of estimates
By Akash Sriram
(Reuters) -New York Times Co on Tuesday forecast stronger-than-expected advertising revenue for the current quarter after second-quarter sales beat estimates, sending the publisher's shares about 5% higher in premarket trading.
The company has been bundling access to news reports and articles with a diverse portfolio of products from podcasts and games to product recommendations as it looks to boost engagement and retain users.
Demand for advertisement spots is on a rebound after economic uncertainty forced companies to trim ad spending. Hospitality, travel and retail are among the sectors boosting ad spend.
The New York Times expects total advertising revenue to be flat in the third quarter, while analysts estimate a drop of 4.1%, according to Refinitiv data.
A rebound in marketing spending helped NYT's digital advertising revenue grow 6.5% in the April-June period.
The company rolled out advertising products across its bundle, including its games and sports news offering The Athletic, boosting digital ad revenue, CEO Meredith (NYSE:MDP) Levien said on a post-earnings call with analysts.
«The bear case… was likely centered around potential digital advertising revenue softness and that is not playing out,» Cannonball Research analyst Vasily Karasyov said.
Analysts and industry experts expect demand for advertising to increase in the second half of the year, as inflation cools.
NYT posted revenue of $590.9 million for the second quarter, compared with estimates of $580.5 million.
The company reported average revenue per user (ARPU) for bundled subscriptions of $13.40, compared with a total digital-only ARPU of $9.15.
NYT added 180,000 digital-only subscribers in the second quarter, compared with 190,000 in
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