High Inflation and Rising Interest Rates Impact Marketing Budgets
The recent increase in inflation and interest rates has put a strain on marketing budgets across various industries, affecting the earnings of ad-reliant companies like Snap Inc (NYSE: SNAP) and Pinterest Inc (N: PINS).
Consumers' Reduced Spending Hinders Publisher's Revenue Boost Plan
With consumers spending less, the New York Times' strategy to increase revenue by bundling core news with digital content, such as podcasts, cooking recipes, and games, has failed.
Times' Q1 Revenue and Digital Ad Revenue Disappoints
For the first quarter, the Times recorded revenue of $560.7 million, which fell short of the anticipated $571 million, per Refinitiv data. The company's digital advertising revenue dropped by almost 9% to $61.3 million.
Slower Growth in Digital-Only Subscribers for the Times
The publisher gained 190,000 digital-only subscribers during the first quarter, down from 240,000 in the previous quarter, to reach 15 million subscribers by 2027.
William Bardeen Appointed as Times' New CFO
In a separate announcement, the Times revealed the appointment of strategy head William Bardeen as its new chief financial officer. He will replace Roland Caputo, who declared his retirement in December.