New York Times Earnings Exceed Expectations in Q3
The New York Times has exceeded investor expectations, reporting better-than-forecasted quarterly earnings on Wednesday, fostered by a surge in digital ad business, as companies recover from the pandemic.
The 170-year-old’s publisher's digital ad revenue jumped 40.2% in Q3, giving opportunity for growth following a depressing period at the peak of the pandemic, when companies decreased their ad budgets to save on cash.
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”, CEO Meredith Kopit Levien commented.
The Times allows readers to track the coverage of some major new items outside of its paywall, boosting traffic to its apps and websites, and leading to paid user conversions. The company has also launched paid subscriptions to its tech products review website - Wirecutter in Q3.
Results posted include an adjusted profit of 23 cents per share in Q3 on a revenue of $509.1 million, as opposed to analyst expectations of a profit of 20 cents per share on a revenue of $499.1 million.
As a result of the news, shares of the company were seen up 4% in early-morning trading.
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