BofA Warns Decline in Movie, Luxury Sales Will Affect NYT Co

Article excerpt

Bank of America analyst Joe Arns is warning ad revenue at The New York Times Co. could take a turn for the worse this year.

In a note to investors, Arns wrote that he believes a drop-off in movie and luxury advertising will affect the New York Times' results. These two categories helped bolster the company's Q3 numbers. In that quarter, revenue at the company grew 3% compared to an industry decline of 7%.

"Although [the New York Times'] recent success in growing its national ad revenue is a positive, we wonder if investors have been lulled into a false sense of security," Arns wrote. "In our view, the risk of a broader economic downturn suggests to us that [the New York Times'] estimates are most at risk relative to current consensus levels."

Luxury merchandise and box office sales slipped in Q4. The note cites Mastercard's SpendingPulse report, which shows a 2% decline of luxury goods sold during the holiday period. …

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