New York Times Beats Profit Estimates on Bundle Strength
The New York Times headquarters in New York.
(Bloomberg) — New York Times Co. reported first-quarter profits that beat analysts’ expectations, driven by the strength of the publisher’s online offerings.
Earnings came to 31 cents a share, excluding some items, the company said Wednesday, surpassing the 20-cent average of Wall Street estimates. Revenue came to $594 million compared with expectations of $592.3 million.
During a difficult time for the news industry, the publisher has been able to attract and retain subscribers by bundling access to its flagship newspaper with the sports information site the Athletic, along with cooking and game apps like Wordle.
The Times added 210,000 digital subscribers in the first quarter, compared with 300,000 in the fourth quarter. The news organization now has a total of about 10.55 million subscribers in line with estimates of 10.6 million. It has set a goal of 15 million by 2027.
During a US presidential election year, which typically creates a surge in political advertising, ad revenue at the Times came to $103.7 million, beating forecasts of $101.7 million.
The Athletic, which the Times bought in 2022, posted an adjusted operating loss of $8.7 million.
The company forecast subscription revenues to grow by 6% to 8% in the second quarter.
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