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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.
NYT
NYT
NYT Revenue by Segment
Revenue by Segment
Digital-only Subs Revenue
CapyFin.comDigital Ads Revenue
CapyFin.comPrint Ads Revenue
CapyFin.comNYTG Subs Revenue
CapyFin.comNYTG Ads Revenue
CapyFin.comNYTG Other Revenue
CapyFin.com 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.
- Other revenues in the second quarter of 2020 are expected to decrease approximately 10 percent compared with the second quarter of 2019.
- The COVID-19 pandemic is expected to affect the outlook.
- Capital expenditures: approximately $50 million.
Revenue & Expenses
Visualization of income flow from segment revenue to net income