Aug 3 (Reuters) – The New York Times Co (NYT.N) forecast a drop in advertising revenue for the third quarter on Wednesday, as brands cut back on ad spending in the face of global economic challenges.
The Times posted a 2.4% drop in digital ad revenue for the second quarter and said total advertising revenue was expected to be in the range of flat to down low single digits for the current three-month period.
Lower ad spending due to rising interest rates, surging inflation and foreign exchange headwinds has forced advertising-dependent firms, including Snap Inc (SNAP.N), Meta Platforms (META.O) and Twitter Inc (TWTR.N), to temper their forecasts.
The Times said it added 180,000 net digital subscribers in the latest period, down from 387,000 subscribers it added in the first quarter, when readers turned to it for its coverage of the Ukraine crisis.
Revenue was $555.7 million for the quarter ended June 26, compared with $498.5 million a year earlier. Analysts on average expected revenue of $552.20 million, according to Refinitiv data.
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Reporting by Chavi Mehta and Akash Sriram in Bengaluru; Editing by Anil D’Silva
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