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Mar 29, 2020
NYT Q1 2020 Earnings Report
NYT reported mixed Q1 2020 results with revenue increase and EPS decrease.
Key Takeaways
The New York Times Company reported a 1.0% increase in total revenues, driven by subscription growth, particularly in digital-only products, which increased 18.3%. However, advertising revenues decreased 15.2%, impacted by the COVID-19 pandemic. The company added 587,000 net new digital subscriptions. Diluted earnings per share were $0.20, compared to $0.18 in the same period of 2019.
Total revenues increased by 1.0% to $443.6 million.
Added 587,000 net new digital subscriptions in Q1 2020.
Digital-only subscription revenue increased by 18.3% to $130.0 million.
Advertising revenues decreased by 15.2% due to the COVID-19 pandemic.
Revenue by Segment
Forward Guidance
The company expects subscription revenues to increase in the mid- to high-single digits. Advertising revenues are expected to decline significantly due to the COVID-19 pandemic. Operating costs are expected to be flat or decrease slightly.
Positive Outlook
- Total subscription revenues are expected to increase in the mid- to high-single digits compared with the second quarter of 2019.
- Digital-only subscription revenue expected to increase in the high-twenties.
- Operating costs are expected to be flat or to decrease in the low-single digits compared with the second quarter of 2019.
- Adjusted operating costs in the second quarter of 2020 are expected to be flat or to decrease in the low-single digits compared with the second quarter of 2019
- The Company defers non-essential spending while continuing to invest in the drivers of digital subscription growth.
Challenges Ahead
- Total advertising revenues in the second quarter of 2020 are expected to decline approximately 50 percent to 55 percent compared with the second quarter of 2019
- Digital advertising revenue expected to decrease approximately 40 percent to 45 percent.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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