NY Times' (NYT) Digitization Efforts Steer The Stock
Zacks Investment Research | Jun 17, 2019 04:22AM ET
Changing consumer preferences and innovative technologies have altered the way in which news is offered and consumed. Readers’ preference for accessing news online, mostly free, has made the industry’s print-advertising model increasingly redundant. As readers started thronging the Internet for news, advertisers followed suit, and so did the newspaper companies.
Trimmed print operations paved the way for online publications that led to the development of a pay-and-read model, as adopted by The New York Times Company (NYSE:NYT) . The company is fast acclimatizing to the changing face of the multiplatform media universe and has already included mobile and reader application products in its portfolio.
The New York Times Company has been realigning cost structure and streamlining operations to increase efficiencies. The company is not only gearing up to become an optimum destination for news and information but is also focusing on lifestyle products and services.
A Brief Introspection of NYT
The New York Times Company has been contemplating new avenues of revenue generation in a bid to counter dwindling print advertising revenues. We note that print advertising revenues fell 11.9% in the first quarter of 2019.
The company is concentrating on online activities. We note that the number of paid digital subscribers reached 3,583,000 at the end of first quarter of 2019 – rising 223,000 sequentially and 28.7% year over year. Subscription revenue grew 3.9% principally due to increase in the number of subscriptions to the company’s digital-only products. Revenue from digital-only subscriptions products jumped 15.1%.
Management now projects total subscription revenue in the second quarter to increase in the low to mid-single digits, while digital-only subscription revenue is likely to rise in the mid-teens. The company has set a goal to reach more than 10 million subscriptions by 2025.
Notably, this Zacks Rank #1 (Strong Buy) stock has surged 38.4% in the past six months, outperforming the Zacks Investment Research
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.