New York Times Adds Digital Subscribers as Digital Advertising Declines

New York Times Adds Digital Subscribers as Digital Advertising Declines #York #Times #Adds #Digital #Subscribers #Digital #Advertising #Declines Welcome to Lopoid

New York Times Co.

NYT 0.74%

added 180,000 digital subscribers in the second quarter but posted its first decline in digital advertising revenue since 2020, due in part to the macroeconomic environment.

“Headwinds from advertising are playing out broadly as we’d expect them to,” Chief Executive

Meredith Kopit Levien

said during an investor call following the results. “We’re making sure we’re resilient as those headwinds from macroeconomic uncertainty continue.”

The news organization said it ended the quarter with 8.4 million paid digital-only subscribers. The subscriber figure counts the individuals who subscribe to at least one Times digital product. Including print, the company ended the quarter with 9.2 million total subscribers, who accounted for 10.6 million subscriptions. In the first quarter, the company had added 387,000 digital subscribers.

New York Times shares were down 5.4% in premarket trading.

Net profit increased 14% to $61.8 million, or 37 cents a share, from $54.3 million, or 32 cents a share, a year earlier. Revenue rose 11% to $555.7 million. Operating profit fell 30% to $51.7 million, largely as a result of expected operating losses at The Athletic, which the company acquired in the first quarter of 2022.

Advertising revenue rose 4.1% to $117.4 million. Digital advertising revenue fell 2.4%, and print advertising revenue increased 15%. The last time the company posted a drop in digital ad revenue was the fourth quarter of 2020.

“Digital advertising revenue decreased primarily as a result of the macroeconomic environment, a reduction in marketer spend on advertising adjacent to news coverage given the current news environment, and fewer programmatic advertising impressions,” the company said in its earnings release.

Ad spending in categories like technology, streaming and finance is facing more pressure than categories like luxury and entertainment, which tend to favor print, Ms. Kopit Levien said during the call.

The company said it expected digital advertising revenue to be flat to slightly lower in the current quarter. Excluding the Athletic, the company expects digital ad revenue to fall by between 4% and 8%.

Subscription revenue increased 13% to $383.6 million. The company didn’t break down the number of subscribers to its digital products including Games, Cooking and Wirecutter, a product-recommendation website, which cost less than the company’s core-news offering, but said digital subscriber growth was driven by its bundle, Games and The Athletic. Other revenue—which includes live events, commercial printing and television series—increased 18% to $54.7 million.

The company said it expected digital-only subscription revenue to grow between 21% and 25% in the current quarter.

The Times recently surpassed 10 million subscriptions ahead of its stated goal of reaching that target by 2025, thanks in part to its recent $550 million acquisition of the Athletic. The news organization had set a new target of at least 15 million total subscribers by year-end 2027.

“Given the strength of our strategy, we are reaffirming our full-year profit outlook and remain confident in our ability to drive enhanced shareholder value, despite market uncertainties,” Ms. Kopit Levien said in a statement. “We are well on our way to achieving our next mile marker of 15 million subscribers by 2027.”

Write to Alexandra Bruell at alexandra.bruell@wsj.com

Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

Click Here To Continue Reading from Source