NY Times (NYT) Q4 Earnings Tops, Digital Subscribers Increase
Zacks Investment Research | Feb 05, 2019 11:29PM ET
The New York Times Company (NYSE:NYT) posted better-than-expected fourth-quarter 2018 results and registered higher digital-only subscriptions. Digital advertising also improved significantly. This was the tenth straight quarter, when this NY-based company delivered positive earnings surprise, while revenue also beat the Zacks Consensus Estimate for the fifth consecutive quarter.
The company delivered adjusted earnings from continuing operations of 32 cents a share that beat the Zacks Consensus Estimate of 28 cents but fell 15.8% from 38 cents recorded in the year-ago period. The newspaper publisher's total revenue of $502.7 million rose 3.8% year over year, and came ahead of the Zacks Consensus Estimate of $479.3 million.
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Subscription revenue fell 2.2% to $263.6 million, principally due to extra week in 2017. Excluding the impact of the additional week, subscription revenue rose 5%. Revenue from digital-only subscriptions products jumped 9.3% to $105.3 million. Management now projects total subscription revenue in first-quarter 2019 to increase in the low to mid-single digits, while digital-only subscription revenue is likely to rise in the mid-teens.
Total advertising revenue came in at $191.7 million in the reported quarter, up 5% year over year. In the preceding quarter, total advertising revenue had increased 7.1%. Total advertising revenue in the first quarter of 2019 is projected to decline in the low to mid-single digits.
Print advertising revenue fell 10.2% to $88.3 million in the quarter under review, following a decline of 0.7% in the preceding quarter.
Digital advertising revenue surged 22.8% to $103.4 million, following an increase of 17.3% in the preceding quarter. Management expects digital advertising revenue to increase in the mid-teens during the first quarter of 2019.
Management expects to take total digital revenue to $800 million by 2020. The company ended 2018 with a total digital revenue of $709 million.
The New York Times Company Price, Consensus and EPS Surprise
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