New York Times Reports 95.7 Percent Fall in Quarterly Net Profit

The New York Times reported a 95.7 percent fall in quarterly profit, hit by restructuring charges related to headcount reductions.

Net profit attributable to the company fell 95.7 percent to $406,000, or break-even per share, hit mainly by restructuring charges related to headcount reductions.

However, on an adjusted basis, the Times  reported a better-than expected rise in quarterly profit as a jump in the newspaper publisher's digital circulation revenue helped offset higher operating costs.

The company, which has been grappling with declining print ad sales, marked 2016 as the "investment year" for raising the bar on digital investments, with plans to invest over $50 million over the next three years to cement its presence outside the United States.

On an adjusted basis, the company earned 6 cents per share from continuing operations in the third quarter, beating the average analyst estimate of 4 cents, according to Thomson Reuters I/B/E/S.

Digital ad revenue, which accounts for 35.5 percent of total ad revenue, rose 21.4 percent from a year earlier, after having declined for the past two quarters.

Chief Executive Mark Thompson said in July that digital ad sales would improve in the second half of the year, offsetting any decline in print ad sales.

Circulation revenue from the company's digital-only subscriptions rose 16.4 percent.

Operating costs rose 3.2 percent to $345.5 million, as the company ramps up its digital business.

Revenue fell 1 percent to $363.6 million, below analysts' average estimate of $365 million.