Magazine publisher Time Inc. (TIME) reported lower-than-expected quarterly revenue as higher digital advertising revenue failed to make up for a fall in income from print ads.
The company’s print ad revenue, which accounts for more than 70% of ad sales, fell 12.8% in the second quarter, from a year earlier.
Digital advertising revenue rose 65%, 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% 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.
Time Inc. is the parent company of Fortune.
