NY Times (NYT) Q3 Earnings Beat, Digital Subscribers Surge
Zacks Investment Research | Oct 31, 2018 11:42PM ET
The New York Times Company (NYSE:NYT) reported better-than-expected third-quarter 2018 results and registered higher digital-only subscriptions. Digital advertising also improved significantly. This was the ninth straight quarter, when this NY-based company delivered positive earnings surprise, while revenue also beat the Zacks Consensus Estimate for the fourth consecutive quarter.
The company delivered adjusted earnings from continuing operations of 15 cents a share that beat the Zacks Consensus Estimate of 13 cents, and rose from 12 cents in the year-ago period. The newspaper publisher's total revenue of $417.3 million rose 8.2% year over year, and came ahead of the Zacks Consensus Estimate of $410.3 million.
Let’s Delve Deep
Subscription revenue grew 4.5% to $257.8 million, primarily due to increase in the number of subscriptions to the digital-only products. Revenue from digital-only subscriptions products surged 18.1% to $101.2 million. Including the impact of the additional week in 2017, management now projects total subscription revenue in the fourth quarter of 2018 to decline in low to mid-single digits, while digital-only subscription revenue is likely to rise in the high-single digits.
Total advertising revenue came in at $121.7 million in the reported quarter, up 7.1% year over year. In the preceding quarter, total advertising revenue had declined 9.9%. Total advertising revenue in the fourth quarter is projected to decline in the mid-single digits.
Print advertising revenue fell 0.7% to $63.9 million in the quarter under review, following a decline of 11.5% in the preceding quarter.
Digital advertising revenue increased 17.3% to $57.8 million, following a decline of 7.5% in the preceding quarter. Management expects digital advertising revenue to increase in the mid-single digits in the final quarter.
Adjusted operating costs came in at $363.7 million during the quarter, up 9.7% year over year on account of rise in marketing and commercial printing costs. Management now anticipates adjusted operating costs to increase in the mid-single digits.
Total adjusted operating profit declined 0.7% to $53.7 million as growth in digital subscription, digital advertising and other revenues was offset by increased adjusted operating costs.
The New York Times Company Price, Consensus and EPS Surprise
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