NEW YORK — The New York Times Company reported revenues for the fourth quarter of 2016 of $439.6 million, a decline of 1.1% from the previous year.
Digital subscriptions continue to grow for The NY Times with 276,000 added in the fourth quarter but the company continues to suffer from a steep decline in print advertising for its newspaper, which is a significant source of revenue for the business.
For all of 2016, print advertising revenue decreased 15.8%, while digital advertising revenue increased 5.9%. Digital advertising revenue was $208.8 million in 2016 compared with $197.1 million in 2015. The company projects print advertising this year to continue to decline.
Paid digital-only subscriptions for The NY Times were 1,853,000 at the end of the fourth quarter of 2016, a net increase of 296,000 subscriptions compared to the end of the third quarter of 2016 and a 45.9% increase from last year. Of the 296,000 additions, 276,000 came from the Company’s digital news products, while the remainder came from the Company’s Crossword product.
For the full year 2016, net income at the company was $23.83 million.
“The continued excellence of our journalism and our consumer-first focus led to incredible strength in our circulation business, both in the fourth quarter and for the full year,” said Mark Thompson, president and chief executive officer, The New York Times Company. “As of today, we have passed the 3 million paid subscription mark (print and digital), a significant milestone.
“In Q4, we added 276,000 net new digital news subscriptions, the single best quarter since 2011, the year the pay model launched. With the rate of growth accelerating over the past year, we believe that there is further opportunity to significantly extend our subscription reach, both in the U.S. and around the world.
“As we said we would, we returned to double-digit digital advertising growth in the second half of 2016. In Q4, we were up 11 percent year-over-year from solid performances in smartphone, marketing services, branded content and programmatic advertising, with growth in these businesses more than making up for stress on the legacy parts of digital advertising. We continue to experience significant headwinds in print advertising, but the robustness of our consumer business, which we expect will continue, provides a strong counter balance to these market challenges. We will remain focused on our legacy cost base while continuing to invest in digital growth and innovation.”
Digital subscriptions generated $223.4 million in 2016 and digital crossword subscriptions earned $9.3 million.