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New York Times Reports Gain of 180,000 Digital Subscribers

New York Times Reports Gain of 180,000 Digital Subscribers
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The New York Times reported on Wednesday that it added 180,000 net digital-only subscribers in the second quarter of the year, but generated less digital ad revenue.

The Times now has 9.17 million paid subscribers. There is this target 15 million By the end of 2027.

The company reported $76 million in adjusted operating profit, down 18 percent from the same quarter last year. It generated $555.7 million in gross revenue, up 11.5 percent from a year ago. Digital subscriptions accounted for $238.7 million of this revenue, an increase of 25.5 percent.

The blow to operating profit came mainly from losses at The Athletic, a sports news website The Times bought it 550 million in February. Adjusted operating losses at The Athletic were $12.6 million in the quarter, from April to June, up from about $19.4 million in the first quarter.

The Times reported 9.107 million subscribers at the end of the first quarter of 2022. This figure was reduced to 9.01 million in this quarter’s results.

A key part of The Times’ strategy is to differentiate between subscribers and subscriptions. A subscriber can subscribe to more than one of the company’s products, including The Athletic, Cooking and Wirecutter. The Times is betting on digital bundling offerings with news reporting to reach new audiences with diverse interests.

“News is the core of our value proposition, but this package makes news indispensable to an ever-expanding group of people,” Meredith Kopit Levien, president and CEO of The Times Company, said in a call with analysts.

In the second quarter, the company announced The Times news report, Games, Cooking, Wirecutter and The Athletic, Ms. Levien said.

Net earnings of 180,000 digital-only subscribers increased 70 percent from net earnings in the second quarter of 2021. The company added 418,000 more in the first quarter of the year. The Athletic added a net increase of 50,000 independent subscribers in its most recent quarter.

The vast majority of The Times’ subscribers pay for digital access only. The number of print subscribers continued to shrink in the second quarter, falling about 7 percent from a year ago to about 761,000.

The Times’ digital ad revenue fell 2.4 percent to $69.3 million in the quarter from a year earlier, as marketers cut spending amid economic uncertainty. Print advertising rose 15.1 percent to $48.1 million from the same quarter last year as the entertainment and luxury categories began to recover from the pandemic.

Total operating expenses increased by 19.6 percent to $504 million. The company also reported $34.2 million in proceeds from the sale of land at The Times’ printing facility in College Point, Queens.

The company said it expects digital subscription revenue to grow 21 to 25 percent in the third quarter compared to a year ago. He said he expects a flat to small decline in total advertising revenue and a 9 to 13 percent increase in adjusted operating expenses during that period.

The company’s shares fell 1 percent at the close of trading on Wednesday.

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