Photo: Steve Kovach, Business Insider
The New York Times is down over 20% at the moment following a huge whiff on earnings related to weak advertising.One part of the conference call really stands out.
Here’s CFO James Follo:
Meanwhile, the advertising landscape has been categorized by a challenging economic environment, which has been compounded by weakened business confidence, associated with the uncertainty around elections and the pending fiscal Cliff. It’s also been affected by ongoing secular trends and an increasingly complex and fragmented digital advertising marketplace.
Print advertising revenues decreased 11% and digital advertising revenues ended down 2%. Operating expenses before depreciation, amortization and severance were up 3%. On a GAAP basis, costs were up 2% and we reported an operating profit of $8.5 million in the third quarter. Excluding depreciation, amortization, severance, operating profit was $34 million.
You can add this to the growing body of evidence that there’s a real slowdown on the corporate side of the economy, ahead of the election.
The other big thing that everyone is talking about is the collapse in core CAPEX spending, which also implies corporate jitters.
Photo: Bloomberg, Business Insider