Wehner also said the company expects margin compression, with operating margins trending toward “mid-30s on a percentage basis,” compared with second-quarter operating margins of 44 percent.
That tightening is the result of broadening markets, investments in news products — such as the recent introduction of the company’s long-form video format, IGTV — and capital expenditures related to safety and security that total “billions of dollars,” Wehner said.
“We think that’s the right thing to do for the business in terms of ensuring the community, safety and durability of the franchise,” he said. “But they don’t have obviously immediate translation into revenue dollars.”
