Time Inc's quarterly revenue misses estimates

[August 04, 2016]  (Reuters) - Magazine publisher Time Inc reported lower-than-expected quarterly revenue as higher digital advertising revenue failed to make up for a fall in income from print ads.

A supporter holds up a copy of Time Magazine with the cover headline "How Trump Won" during Trump's speech at a veteran's rally in Des Moines, Iowa January 28, 2016. REUTERS/Rick Wilking - RTX24HOV
 

The company's print ad revenue, which accounts for more than 70 percent of ad sales, fell 12.8 percent in the second quarter, from a year earlier.

Digital advertising revenue rose 65 percent, helped by acquisitions, including that of advertising company Viant in February.

Like many publishers, Time Inc has been seeing a fall in print ad sales as advertisers shift their spending to other media.

Time Inc's net profit fell 25 percent to $18 million, or 18 cents per share, in the quarter ended June 30.

Revenue fell slightly to $769 million, missing analysts' average estimate of $782.5 million, according to Thomson Reuters I/B/E/S.

Excluding items, the company earned 22 cents per share, above the average analyst estimate of 15 cents per share.

(Reporting by Aishwarya Venugopal in Bengaluru; Editing by Maju Samuel)

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