Advertising revenue fell by 30 per cent at the New York Times Company but the media group exceeded overall revenue and profit forecasts for the third quarter after cost cutting and higher cover prices, sending its shares up sharply.

For the first time, circulation revenue in the group, which includes The New York Times and The Boston Globe, eclipsed advertising revenue, reversing the order at most papers. Many titles once earned as much as 80 per cent of their revenue from advertising.

The change suggests that the New York Times Company can hold a loyal reader base and charge them more money for news, even as advertisers shrink their budgets and pursue consumers online.

The business reported a third-quarter loss of $35.6 million (£21.4 million), which included pension obligations and other items. Last year’s loss was $106.3 million.

Group revenue fell 17 per cent to $570.6 million on advertising declines, beating the average analyst forecast of $561.6 million. A 6.7 per cent rise in circulation brightened the picture, and the company said that advertising in the fourth quarter looked better.

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