New York Times 2021 Q2 Revenue: 8 Million Subscribers

The New York Times Company announced its quarterly results in a statement Wednesday, with 8 million subscriptions, President Donald J. Trump dominating the headline, and the same number as in 2019 when the pandemic had not yet occurred. He said he plans to add a subscription. Melt the world economy. The company estimates that it will have 8.5 million paid print and digital subscriptions by the end of 2021.

In a statement, CEO Meredith Kopit Levien said the company’s performance was “a testament to the success of our strategy” of focusing on digital subscriptions. She added that she set the Times readers’ potential market size to 100 million and had the opportunity to continue investing while “getting into the daily habits.”

The Times Company reported modest growth (usually the weakest) in the April-June quarter, adding 142,000 new digital subscribers. The news app is 77,000 and the food and games are 65,000. As of the end of June, The Times had a total of 7.9 million subscribers and digital product payments of 7.1 million. Of the digital subscribers, 5.3 million have subscribed to the news app.

The publisher reported adjusted operating income of $ 93 million against revenue of $ 499 million. Investors were looking for $ 73 million in adjusted operating profit for $ 488 million in sales. Overall, the business grew 24% year-over-year with marketers returning to pre-pandemic spending levels, with a steady 16% increase in subscription dollars and a 66% increase in advertising.

Wall Street investors and news executives across the country consider the Times to be both Bellweather and standalone. The company’s digital performance shows what is possible for news media organizations in the age of Facebook and Google, but not everyone in publishing (digital or print) emulates its success. You will be able to do it. The Times’ online revenue (especially advertising and subscriptions) increased 41% to $ 261 million.

The company expects digital subscription revenue to grow 25-30% year-over-year and online advertising revenue to grow 40-45% for the quarter ending September. Total subscription revenue should increase by 13-15% and advertising should increase by 30-35%.

That’s probably why stocks in companies like the Silicon Valley Giants are trading at high premiums.

Investors pay about $ 41 for every $ 1 of the expected profit to own Times shares. That’s more than people are paying to own Facebook for $ 21 and Google for $ 25. Rupert Murdoch’s News Corporation, the publisher of The Wall Street Journal, trades at a reasonable $ 40 for every $ 1 expected profit. Only the shares of Netflix (another subscription service at a price similar to The Times) are higher, at $ 62 for every $ 1 of future income.

Still, the Times’ share price fell nearly 17% this year as the new administration took over the White House in January. By comparison, the S & P 500 Index has risen by nearly 18%.

The Times continues to invest in digital businesses, with costs up 18-20% this quarter and a total capital investment of $ 50 million for the full year. This is second only to the cash held by the company. It was $ 497 million at the end of June.

New York Times 2021 Q2 Revenue: 8 Million Subscribers

Source link New York Times 2021 Q2 Revenue: 8 Million Subscribers

Back to top button