TheStreet.com falls to a 2nd-quarter loss but says ongoing subscription, ad revenue rises

TheStreet.com slides to small loss in 2Q

NEW YORK — Financial media publisher TheStreet.com Inc. on Wednesday posted a loss for the second quarter, but said revenue from ongoing subscription services and advertising increased 8 percent year-over-year.

CEO Daryl Otte said the company is pleased to see ad growth in a quarter in which the financial markets experienced a significant decline and many investors appeared to have stepped back. The second-quarter’s volatile trading environment included the historic May 6 “flash crash” which spooked many investors.

For April through June, TheStreet.com’s loss totaled $436,222, or 1 cent per share. That compares with a year-ago profit of $243,598, or 1 cent per share, which including higher net interest income and gains on sales of marketable securities. The company also said it booked higher costs in the latest quarter due to new hires, mostly in its sales and marketing department, and technology investments.

Revenue edged down 2 percent to $14.7 million from $15 million in the year-ago quarter due to the sale of former unit Promotions.com. Excluding Promotions.com, the company’s revenue grew 5 percent. The company said advertising revenue rose 6 percent year-over-year, while subscription services revenue increased to the highest level in seven quarters.

The company did note that subscription bookings increased just 1 percent, which it blamed on a slowdown in new account acquisitions for its stock-based services after the “flash crash.”