NY Times (NYT) Q3 Earnings Top, Digital Subscribers Rise
Zacks Investment Research | Oct 31, 2017 09:34PM ET
The New York Times Company (NYSE:NYT) posted fifth straight quarter of positive earnings surprise, when it reported third-quarter 2017 results. The company delivered adjusted earnings from continuing operations of 13 cents a share that came ahead of the Zacks Consensus Estimate of 9 cents and more than doubled from the year-ago quarter. The newspaper publisher's total revenue of $385.6 million rose 6.1% year over year but fell short of the Zacks Consensus Estimate of $388 million.
The company’s positive earnings surprise streak and increase in digital subscribers have helped propelled the stock. In fact year to date, the stock has surged 43.6% and has comfortably outperformed the industry that gained 15.4%.
The quarter witnessed an increase in digital advertising and subscription revenues but a decline in print advertising revenue.
Let’s Delve Deep
Subscription revenue grew 13.6% to $246.6 million, primarily due to increase in the number of subscriptions to the digital-only products and a rise in the home delivery price of The New York Times. Revenue from digital-only subscriptions jumped 46.3% to $85.7 million. Management now projects total subscription revenue in the fourth quarter to increase in the high-teens.
Total advertising revenue came in at $113.6 million in the reported quarter, down 9% year over year. In the preceding quarter, total advertising revenue had inched up 0.8%. However, print advertising revenue fell 20.1% to $64.4 million in the quarter under review, following a decline of 10.5% in the preceding quarter.
Digital advertising revenue surged 11% to $49.2 million, after witnessing an increase of 22.5% in the preceding quarter. Higher digital advertising revenue came on the back of rise in revenues from mobile platform, programmatic buying channels and branded content, partly offset by a fall in traditional website display advertising.
The company on one end saw an 11.4% fall in the display advertising category, while on the other end it witnessed a 9.8% jump in the classified and other advertising category. The diversified media conglomerate hinted that total advertising revenue in the final quarter is likely to decline in the high single-digits.
Adjusted operating costs came in at $329.2 million during the quarter, up 1.5% year over year. Management now anticipates adjusted operating costs to increase in the high-single digits in the fourth quarter. Total adjusted operating profit grew 44.1% to $56.5 million.
Get The News You Want
New York Times Company (The) Price, Consensus and EPS Surprise
Original post
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.