New York Times earnings beat on ad rebound, subscriber growth
Reuters
Published Nov 03, 2021 07:22AM ET
Updated Nov 03, 2021 09:00AM ET
By Eva Mathews
(Reuters) -The New York Times Co reported better-than-expected quarterly earnings on Wednesday, as a surge in marketing spend by companies emerging from the pandemic bolstered its digital ad business.
The publisher's digital ad revenue jumped 40.2% in the third quarter, putting it on a path to growth following a hammering at the peak of the pandemic when companies slashed their ad budgets to save up on cash.
The 170-year-old company started its digital transformation more than a decade ago, focusing on a subscription-first business model that helped it weather steep declines in advertising and print readership.
In the process, it beefed up the business by pumping its digital products with a rich lineup of news, crosswords, podcasts - including "The Daily" - and cooking recipes, while making them stand out with multimedia and interactive elements using pictures, graphics and videos.
The Times said it added 455,000 digital-only subscribers during the quarter, its highest this year as the news cycle gathered pace.
"While COVID remained the dominant story as it has for the last 20 months, a wide range of topics also captured the public's attention, including the Afghanistan withdrawal and the tragic events in Haiti, the resignation of New York's Governor and our ongoing climate reporting," Chief Executive Officer Meredith (NYSE:MDP) Kopit Levien said.
The Times allows readers to track the coverage of some important new items outside of its paywall, boosting traffic to its apps and websites, and leading to paid user conversions. It also launched paid subscriptions to its tech products review website, Wirecutter, in the third quarter.
The company posted an adjusted profit of 23 cents per share in the third quarter on revenue of $509.1 million. Analysts had expected a profit of 20 cents per share on revenue of $499.1 million, according to Refinitiv data.
Shares of the company were up 4% in trading before the bell.
Get The News You Want
Written By: Reuters
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.