NEW YORK (TheStreet) -- The New York Times (NYT) has seen a surge in subscribers since the U.S. presidential election on Nov. 8, but it's not done cost-cutting as it continues to combat a dramatic decline in print advertising revenue.
Earlier this month, the company reported a 19% drop in print advertising revenue for the 2016 third quarter, which contributed to the overall 8% decline in ad revenue.
The Times is expecting "similar trends" for its fourth-quarter results, due out Feb. 2, CEO Mark Thompson said on CNBC's "Squawk on the Street" on Tuesday.
However, print advertising is only about one-fifth of the company's revenue as it continues to pivot toward digital ad revenue, he said. The physical Times paper is a "very valuable thing," but it's also a "small part of our economics."
The paper has made "considerable cost savings over the years," Thompson said. But he believes there are still opportunities to further reduce costs without having to compromise the quality of the newspaper. "That means we have to trade carefully. It means sometimes there are difficult choices to be made," he said.
The company's current strategy includes investing in the "digital future" while also "looking hard" at its costs, Thompson explained. "You'll see us in 2017 continuing to pare down on costs as well."
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
TheStreet Ratings team rates New York Times as a Hold with a ratings score of C. The primary factors that have impacted the team's rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks.
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