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

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on May 8, 2024
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  • The company announced a revenue of $594 million for the quarter.
  • Total advertising revenue slightly declined by 2.4% to $103.7 million.
  • The NYT also reported a downturn in its print sector, with print advertising revenue falling by about 10%.

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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.

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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

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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.

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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

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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

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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

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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.

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