New York Times profits buoyed by online subscriptions

Mark Thompson Chief executive Mark Thompson said the advertising market remained challenging

Related Stories

Profits at the New York Times have tripled, as a surge in online subscriptions more than offset weak demand for advertising space.

The US newspaper, which introduced a paywall on its website almost two years ago, said online subscribers rose 13% over the last three months.

Subscriptions beat advertising revenues for the first time in its history.

Net income in the last quarter of 2012 at the highbrow newspaper was $177m (£112m), up from $59m a year ago.

The results were also flattered by a $164m windfall from its sale of jobs search engine late last year, and the fact that the 2012 quarter contained an additional week.

The strong quarter helped push the newspaper group, which also owns the International Herald Tribune, back into a full-year profit for 2012 of $133m, compared with a 2011 loss of $40m.

New York Times Co.

Last Updated at 05 Mar 2015, 16:01 ET *Chart shows local time New York Times Co. intraday chart
price change %
13.53 -

"For the first time in our history, annual circulation revenues surpassed those from advertising," said chief executive Mark Thompson, who joined the company in August, having previously been director general of the BBC since 2004.

"By contrast, the advertising environment remained challenging in the fourth quarter."

Advertising revenues were down 8% from a year earlier, adjusting for the additional week in the 2012 quarter, with both print and online advertising suffering.

The New York Times is not the only one to suffer from a fall-off in advertising. Time Warner and Gannett, owner of popular tabloid USA Today, reported the same problem in their quarterly results released this week.

Markets focused on the 16% rise in subscriptions revenues. Subscriptions made up 48% of the company's total revenues in 2012, compared with 45% for advertising.

The newspaper's share price jumped 15% in morning trading on Wall Street, before later falling back to be up just 4.5% by mid-afternoon.

More on This Story

Related Stories

The BBC is not responsible for the content of external Internet sites

More Business stories


Features & Analysis

  • Cartoon of women chatting on the metroChat wagon

    The interesting things you hear in a women-only carriage

  • Replica of a cargo boxSpecial delivery

    The man who posted himself to the other side of the world

  • Music scoreNo encore Watch

    Goodbye to NYC's last classical sheet music shop

  • Jon Sopel'Emailgate'

    Hillary gets a taste of scrutiny that lies ahead

Elsewhere on the BBC

  • Audi R8Best in show

    BBC Autos takes a look at 10 of the most eye-catching new cars at the 2015 Geneva motor show


  • A robotClick Watch

    The latest in robotics including software that can design electronics to solve problems

Try our new site and tell us what you think. Learn more
Take me there

Copyright © 2015 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.