New York Times Co (NYT.N) reported a higher-than-expected quarterly profit, and said it expected digital revenue from its international business to account for a significant portion of its revenue in five years.
The newspaper publisher said earlier this month that it aimed to double its annual digital revenue to $800 million by 2020 with a focus on winning over smartphone users.
“International revenue should be a significant part of our $800 million target,” Chief Executive Mark Thompson told Reuters on Thursday.
The company said it was trying to popularize its digital content globally by taking a number of steps such as allowing subscribers to pay in local currencies and investing in marketing.
NYT, like many newspaper and magazine publishers, has been under relentless pressure to replace an evaporating pool of print advertising dollars with digital ads and money from subscriptions.
To broaden its advertising stream, the company plans to bring virtual reality to its print subscribers by distributing Google Cardboard headset to view its new VR application and films.
NYT also reported a higher-than-expected quarterly profit, after its cost-cutting initiatives paid off.
Digital advertising revenue fell about 5 percent to $36.5 million in the third quarter, while paid subscribers to the company’s digital-only products rose 19 percent to slightly over one million.
“We remain bullish about our digital advertising business and expect it to return to growth in the fourth quarter,” Thompson said in a statement.
Net income attributable to shareholders from continuing operations was $9.4 million, or 6 cents per share, in the third quarter, compared with a loss of $12.5 million, or 8 cents per share, a year earlier.
Excluding items, the company earned 9 cents per share, above the average analyst estimate of 6 cents, according to Thomson Reuters I/B/E/S.
Revenue rose marginally to $367.4 million, beating the average analysts’ estimate of $364.7 million.
The company’s shares closed up 1.5 percent at $13.25 on the New York Stock Exchange, after rising as much as 6 percent earlier in the day.
(Reporting By Arathy S Nair in Bengaluru- Editing by Don Sebastian and Anil D’Silva)
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