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Mar 28, 2021

NYT Q1 2021 Earnings Report

NYT's Q1 2021 earnings were released, showing increased total revenues and digital subscriptions growth.

Key Takeaways

The New York Times Company reported a 6.6% increase in total revenues, driven by a 15.3% rise in subscription revenues and a 16.3% increase in digital advertising revenue. The company ended the quarter with over 7.8 million paid subscriptions, including approximately 6.99 million digital-only subscriptions. Operating profit increased significantly due to higher digital-only subscription revenues and digital advertising revenues.

Total revenues increased by 6.6% to $473.0 million.

Digital-only subscription revenue grew by 38.1% to $179.6 million.

The company added 301,000 net new digital subscriptions.

Operating profit increased to $51.7 million from $27.3 million.

Total Revenue
$473M
Previous year: $444M
+6.6%
EPS
$0.26
Previous year: $0.17
+52.9%
Gross Profit
$222M
Previous year: $200M
+11.0%
Cash and Equivalents
$891M
Previous year: $687M
+29.7%
Free Cash Flow
$26.5M
Previous year: $23.6M
+12.3%
Total Assets
$2.28B
Previous year: $2.02B
+12.8%

NYT

NYT

NYT Revenue by Segment

Forward Guidance

The company expects subscription revenues to increase approximately 15 percent in the second quarter of 2021, with digital-only subscription revenue expected to increase approximately 30 percent. Total advertising revenues are expected to increase approximately 55 percent to 60 percent, and other revenues are expected to increase in the low single-digits. Operating costs are expected to increase in the mid- to high-teens.

Positive Outlook

  • Total subscription revenues are expected to increase approximately 15 percent.
  • Digital-only subscription revenue expected to increase approximately 30 percent.
  • Total advertising revenues are expected to increase approximately 55 percent to 60 percent.
  • Digital advertising revenue expected to increase approximately 70 percent to 75 percent.
  • Other revenues in the second quarter of 2021 are expected to increase in the low single-digits.

Challenges Ahead

  • Operating costs and adjusted operating costs are expected to increase in the mid- to high-teens.
  • Moderated growth is expected to continue through the second quarter.
  • Annual total net subscription additions are expected to be in the range of the company's 2019 performance.
  • Audiences declined from their historic highs last year.
  • Fewer net subscription additions were seen in the latter part of the quarter.

Revenue & Expenses

Visualization of income flow from segment revenue to net income