BofA Warns Decline in Movie, Luxury Sales Will Affect NYT Co
Saba, Jennifer, Editor & Publisher
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. …