Shares of "the failing New York Times" were crushed up to 20% on Wednesday after the company told investors that it expects its advertising revenue to fall by "high single digits" in the third quarter, according to Markets Insider.
The company's revenue came in at $436.25 million, which fell short of the $439.25 million that analysts were expecting. And, despite beating on EPS by $0.02, the company's operating profit fell from last year to $37.9 million, from $40 million.
The kicker, however, was when the company admitted that it expected total ad revenue to fall in the high single digits in the third quarter compared to last year. Digital ad revenue, which continues to account for a larger portion of the company's advertising mix, is also expected to fall by high single digits.
CEO Mark Thompson commented:
"We expect the second half of 2019 to be somewhat more challenging for digital advertising than the first half, with this year's revenue comping against our large gains in the third and fourth quarters of 2018."
Digital advertising had accounted for 48.1% of the company's total ad revenue in the second quarter.
The company guided for subscription sales to rise by "low to mid single digits" in Q3 and digital subscriptions to rise in the "mid-teens".
The Times said that it added 197,000 digital subscribers during the period, which brings its total subscriber base to 4.7 million. The company's goal is to hit 10 million total subscriptions by 2025.
CEO Thompson concluded: "While profitability declined in the quarter, that is in large part a result of continued investment into growing our subscription business."
Seems like perhaps the death of RussiaGate and Mueller's Report have spoiled the party?