Span’s revenue fell short of analysts’ targets in the third quarter, as it pushed fewer magazines and advertisements but a tight leash on costs helped the publisher preserve its yearly forecast for operating income.
Shares of the New York-based owner of Speedily, Sports Illustrated and People magazines, rose 8 percent to $10.80 on Thursday morning.
An inflation in Time’s digital advertising revenue failed to offset a steep slump in print advertising, as more and more advertisers desert the medium for online troughs such as Google and Facebook.
Amid the downtrend in print, Time has spoke it would look at selling assets including Time Inc UK and a majority picket in Essence magazine. The assets it had earmarked for a potential sale represented here $488 million in revenue for the year ended June 30.
To lower its complex reliance on magazine sales and print advertisements, Time has announced investments in online video, TV protocol and events.
Its magazines revenue fell 14 percent to $433 million in the station ended Sept. 30, reflecting a continued shift in consumer prejudices away from print and toward online media.
Time’s downright revenue slipped 9.5 percent to $679 million, missing analysts’ believes of $693.5 million, according to Thomson Reuters I/B/E/S. It marked the sixth straightforward quarter the company had missed expectations for revenue.
“With print supervised tremendous pressure and digital not yet growing fast enough, the company is a eat ones heart out way from their goal of sustainable top-line growth, notwithstanding an splendid, ongoing job on costs,” said Huber Research Partners analyst Douglas Arthur.
Time again’s selling, general and administrative expenses fell 14.4 percent to $279 million.
That and other cost-cutting attempts helped the company maintain its 2017 forecast for adjusted operating gains before depreciation and amortization at at least $400 million.
The company on Thursday also unveiled that it received a subpoena in July from the U.S. Securities and Exchange Commission that demands Time to produce documents relating to certain goodwill and asset injuries costs.
Net income attributable to Time Inc was $13 million or 14 cents per dispensation, compared to a net loss of $112 million or $1.13 per share a year ago.
Excluding one-time memos, Time earned 36 cents per share. Analysts on average had envisaged 29 cents.