NY Times (NYT) Registers Record Digital Revenues In 2019
Zacks Investment Research | Jan 14, 2020 08:32PM ET
The New York Times Company (NYSE:NYT) has been making concerted efforts to lower dependency on traditional advertising and focus on digitization to adapt to the changing face of the multiplatform media universe. Rapid digitization in the core areas of advertising, subscriptions and sales, printing, and distribution services are turning out to be a major source of revenues.
The company’s strategic endeavors in this direction facilitated this diversified media conglomerate to attain its set target of doubling digital revenues a year ahead of schedule. The company passed its goal of $800 million of annual digital revenues in 2019. We note that the company’s digital revenues were around $400 million in 2015.
Certainly, 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 in 2011. Last year, the company added more than 1 million net digital subscriptions, the highest annual run-rate since the launch of the digital model. The company now has more than 5 million total subscriptions, comprising 3.4 million core news subscriptions, more than 300,000 to NYT Cooking and 600,000 to NYT Crossword, as well as nearly 900,000 print subscriptions.
Following the news, shares of this Zacks Rank #3 (Hold) company have increased 4.6% during the trading session on Jan 14. Notably, the stock has gained 14.8% compared with Original post
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.