New York Times Q1 earnings: revenues beat estimates to jump to $594 M as digital subscriptions grow

The New York Times reported a successful first quarter on Wednesday, exceeding revenue and profit estimates as its diverse content bundle strategy attracted more subscribers.

Ahead of the 2024 U.S. presidential elections and major sports events, the publisher has increasingly focused on combining its core news coverage with a variety of content, including podcasts, cooking recipes, and games.

NYT’s revenue beats expecations

The company announced a revenue of $594 million for the quarter, slightly above the analyst expectations of $591.9 million according to LSEG data.

Adjusted earnings stood at 31 cents per share, surpassing the estimated 20 cents. This boost is attributed to a nearly 8% rise in subscription revenue, which hit $429 million.

Revenue from digital-only products also saw a significant increase of over 13% due to higher demand for the company’s bundled and multiproduct offerings.

Subscriber growth amid shifting trends

Despite the positive revenue trends, the New York Times observed a slowdown in the growth of digital-only subscribers, adding 210,000 in the first quarter, down from 300,000 in the previous quarter.

Advertising revenue in a digital shift

Total advertising revenue slightly declined by 2.4% to $103.7 million.

However, digital advertising, which represents the largest portion of the company’s ad sales, saw a near 3% increase. This shift highlights a broader industry trend where marketers are moving away from print towards digital and sports advertising to engage a younger and broader audience.

The Athletic sees substantial growth

In contrast to the general advertising slowdown, The Athletic, focused on sports coverage, reported a substantial 33% jump in total revenue and an 18% increase in subscription revenue, particularly in anticipation of the Paris Olympics.

Challenges in print

The New York Times also reported a downturn in its print sector, with print advertising revenue falling by about 10% and a 2% drop in print subscription revenue.

This underscores the ongoing challenges faced by traditional print media in an increasingly digital world.