The Times also expects digital ad revenue to decline by low-to-mid-single digits in the current quarter, joining ad-dependent companies such as Snap Inc and Pinterest Inc in facing pressure from squeezed marketing budgets across industries.
"Advertising continues to experience near-term, cyclical challenges," said New York Times CEO Meredith Kopit Levien. The company's digital ad revenue fell nearly 9% to $61.3 million in the January-March period, while total revenue of $560.7 million came in below analysts' estimates of $571 million, according to Refinitiv data.
The publisher added 190,000 digital-only subscribers in the first quarter, compared with 240,000 in the prior quarter, bringing its total to more than 9.7 million.
It has a goal of 15 million subscribers by 2027.
"Our bundle strategy is gaining momentum, engagement metrics are strong, pricing initiatives are taking hold and we are slowing cost growth," Levien said.
The company's subscription revenue grew nearly 7%, with the average revenue for each digital-only subscriber falling just 1%, compared with a 7% decline in the previous quarter and an 8% slide a year earlier.
Its adjusted profit of 19 cents per share was above estimates of 17 cents. In a separate release, the Times said it appointed strategy head William Bardeen as its chief financial officer, replacing Roland Caputo who had announced his retirement in December.
(Reporting by Samrhitha Arunasalam in Bengaluru; Editing by
Devika Syamnath)
