The New York Times (NYT -0.78%), a leader in digital news and media, said first-quarter earnings and revenue surpassed analyst estimates amid rising digital subscription and increased advertising.
Net income rose 81% to $40.4 million, or EPS of $0.24, up from $22.3 million, or $0.13, in the year earlier quarter, the company said in a statement today. The latest result topped the average analyst EPS estimate of $0.20.
The company's revenue of $594 million, a 5.9% gain from a year earlier, also beat estimates, which called for revenue of $592 million.
| Metric | Q1 2024 Actual | Analyst Estimate | Q1 2023 Actual | % Change YoY |
|---|---|---|---|---|
| EPS | $0.24 | $0.20 | $0.13 | 85% |
| Total Revenue | $594M | $592M | $560.7M | 5.9% |
| Digital Subscribers | 9,910 | N/A | 9,020 | 9.9% |
| Digital-only Subscription Revenue | $293.0M | N/A | $258.8M | 13% |
| Operating Profit | $48.3M | N/A | $27.9M | 73% |
Data sources: Company results from company. Analyst estimates from FactSet.
About The New York Times
The company, best known for its flagship daily newspaper The New York Times, is at the forefront of journalism and digital media innovation. With 9.91 million online subscribers, the company is focused on creating a comprehensive digital subscription model that includes news, opinion, and diversified lifestyle content such as cooking and games, contributing significantly to revenue growth. The company's strategy of expanding its digital subscription products, such as The Athletic, and emphasis on high-quality journalism, has been central to retaining and expanding its subscriber base.
The New York Times plans for focus on adding more digital subscription, maintaining the breadth and quality of its journalism, and optimizing advertising revenue.
Quarterly highlights
During the first quarter, added about 210,000 net new digital-only subscribers. This suggests progress in the company's multi-product strategy, combining traditional news coverage with a comprehensive suite of digital offerings that cater to a wide array of interests.
Earning also got some help from digital advertising revenue, which rose 2.9%, reflecting broader industry trends and the company's ability to appeal to digital advertisers. Operational efficiencies, cost controls and revenue gains contributed to a 73% increase in operating profit.
Looking ahead
The New York Times's management expressed optimism about the future, projecting continued growth in digital subscriptions and advertising revenue. The company's focus on digital initiatives and subscription growth is paramount, with strategic investments planned in journalism, technology, and product development.
Investors are encouraged to watch for further subscriber growth, technological enhancements, and the company’s ability to adapt to changing market dynamics.
