Shares of The New York Times Co climbed after the digital and print news company reported second-quarter earnings that beat expectations, as growth in subscription revenue offset flat advertising revenue.
Net income fell to $46.6 million, or $0.28 a share, from $61.8 million, or $0.37 a share, in the year-ago period. Excluding non-recurring items, adjusted EPS rose to $0.38 from $0.28, well above the Street consensus of $0.21.
Revenue grew 6.3% to $590.9 million, as subscription revenue rose 6.8% to $409.6 million, while advertising revenue edged up 0.3% to $117.8 million.
Digital-only subscription revenue rose 13% to $269.8 million while print subscription fell 3.5% to $139.8 million as home-delivery revenue fell 3.9%.
Meredith Kopit Levien, president and chief executive officer, said: “Our second-quarter results confirm our view that our essential subscription strategy is working as designed, with momentum in several key areas.
"We added 180,000 net new digital subscribers, with more than half of our digital starts taking the bundle for the second quarter in a row."
Shares advanced 7.4% to $43.85 Tuesday morning.