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New York Times Revenue Falls Short of Estimates Amid Slowing Ad Spend

The New York Times Co. experienced lower-than-expected quarterly revenue as businesses, cautious due to economic uncertainties, cut back on digital advertising expenditure, and readers reevaluated paid subscriptions.

The New York Times building
The New York Times building

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.