Time Inc. (NYSE: TIME), the country’s largest magazine publisher, reports an overall revenue decline of $4 million for the second quarter of 2016, reflecting declines in print and other advertising revenue and circulation revenue. The decline was offset, in part, by growth in digital advertising. Revenue highlights for Q2 include:

• Total advertising revenue was $426 million, a 6 percent increase over $420 million year-over-year.
  • Print and other advertising revenue was $299 million, a 13 percent decrease from $343 million year-over-year.
  • Digital advertising revenue was $127 million, a 65 percent increase from $77 million year-over-year, primarily due to the acquisition of Viant. Video and programmatic sales also contributed to the increase in digital ad revenue.
  • Subscription revenue was $154 million, down 7 percent from $166 million year-over-year.
  • Newsstand revenue was $74 million, down 10 percent from $82 million year-over-year.
  • Other circulation revenue was $8 million, a 33 percent increase from $6 million year-over-year.
  • Other revenue was $107 million, an 8 percent increase from $99 million year-over-year.
  • Total revenue was down $4 million, an 1 percent decrease from $773 million year-over-year.

For the six months ended June 30, 2016, Time Inc.’s total revenue was relatively flat at $1.46 billion compared to $1.45 billion this time last year. Time Inc. Chairman and CEO Joe Ripp commented on the company’s second quarter financials in a press release:

“We are entering an era where mobility and internet technology will touch every aspect of our lives. At Time Inc., we are positioning ourselves to benefit from the next wave of disruption. We are making progress to transform Time Inc. into a multi-platform, multimedia enterprise; and we are infusing digital and entrepreneurial culture into our day-to-day operations. In July, we announced our most far-reaching realignment program to date. It included very important changes to shed our siloed organizational structure. It enables us to integrate the Company across sales, edit, digital, brand management and native solutions and potentially unlock innovation, scale and synergy. I am confident that our new structure will enable us to seize the many new opportunities ahead.”

As part of the financial report, Time Inc. revised its 2016 guidance for revenue to a flat 1.5 percent, operating income between $215 million and $240 million, and adjusted OIBDA of $400 million to $430 million.

In its press release headline, Time Inc. claims that its audiences are the largest in company history with mobile user views up 29 percent, video user views up 57 percent and a social media footprint expansion of 37 percent. The report did not, however, share any details about those data points.

After the second quarter financials were reported, Time Inc. stock fell 5.4 percent to $14.81, said the Wall Street Journal. Stock has been falling steadily since the company announced its reorganization in mid-July. As of 11:28 AM Eastern on August 9, stock had dropped to $14.00.

This report comes three weeks after Time Inc. announced a major organizational realignment to enable product, editorial and advertising sales teams to work across all Time Inc. brands and to more easily provide creative solutions to marketers. This reorganization means many major changes at Time Inc., including the layoffs of more than 100 employees, according to CNN Money.

Insider Take:

Like so many other media organizations, Time Inc. is trying to find its way in a changing, digital-first media world. While it is making strides in digital advertising to offset print advertising and circulation declines, it has not moved quickly enough, forcing the company to do a major reorganization and lay off employees. That’s one of the disadvantages of being such a large company. While the company has extensive resources, it cannot be as nimble as it needs to be.

Time Inc. is now in the process of correcting that, but it will take time and will likely suffer additional revenue and staff losses in the meantime. In this business, to be successful and to serve your subscribers’ needs, you must do more than react to change. You must drive it.