The New York Times reported a gain of 180,000 digital subscribers

The New York Times reported a gain of 180,000 digital subscribers
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The New York Times Company added about 180,000 net digital-only subscribers in the second quarter of the year but generated less digital advertising revenue, it said Wednesday.

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

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

The operating profit hit was mostly due to losses at The Athletic, a sports news website Buy the Times $550 million in February. The Athletic’s adjusted operating loss was $12.6 million for the quarter, April through June, down 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 number fell to 9.01 million in this quarter’s results.

A key part of The Times’ strategy is to differentiate between customers and membership. A customer may have subscriptions to multiple products from the company, including athletic, cooking, and wirecutter. The Times is betting on integrating digital offerings with its news reporting to reach new audiences with diverse interests.

“News is core to our value proposition, but the bundle helps ensure The Times is essential to a growing demographic, even as news engagement ebbs and flows,” Times Company President and CEO Meredith Kopit Levien said on a call with analysts.

In the second quarter, the company had its highest number of new subscribers in the All Digital Access tier, which includes The Times News Report, Games, Cooking, Wirecutter and The Athletic, Ms. Levien said.

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

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

The Times Company’s digital advertising revenue in the quarter fell 2.4 percent from a year earlier, to $69.3 million, as marketers cut spending in the face of economic uncertainty. Print advertising rebounded 15.1 percent to $48.1 million from the same quarter last year, as the entertainment and luxury segments began to recover from the pandemic.

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

The company said it expected digital subscription revenue in the third quarter to grow 21 to 25 percent from a year earlier. It said it expected a flat or smaller decline in total advertising revenue and a 9 to 13 percent increase in adjusted operating expenses over the period.

Shares of the company fell 1 percent in late trading on Wednesday.

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