LONDON (Brand Republic) - Weak advertising revenues sent shares in The New York Times Company downwards, following a warning that first-quarter earnings would fall short of analysts’ expectations.
The warning follows a slowdown in the US economy, which has hit a number of sectors that the media relies upon for advertising revenues.
Investors sent the share price tumbling 5.5% to $43 (£29.29) on the news.
The publisher said it expects to achieve earnings of 35-37 cents a share, compared with 47 cents a share last year. This is well short of analysts’ forecasts of 45 cents a share.
The company said it expects to meet its target of 10%-15% growth in full-year earnings. It recently announced price increases, including that of pushing the price of its flagship Sunday edition of the New York Times up to $3 (£2.04) from $2.50 (£1.70).
The newsstand price of the Sunday paper, which counts 40% of its circulation from retail sales, was last changed in 1996. The New York Times said the price hike reflected rising production and distribution costs, as well as higher newsprint costs.