•
Jun 26, 2022

NYT Q2 2022 Earnings Report

The New York Times Company reported an increase in total revenues, driven by digital subscription growth, while operating profit decreased due to investments in The Athletic.

Key Takeaways

The New York Times Company announced its second-quarter results, which showed an 11.5% increase in total revenues, reaching $555.7 million. This growth was largely driven by a 25.5% increase in digital subscription revenues. However, operating profit decreased by 29.5% to $51.7 million, primarily due to operating losses from The Athletic. The company added approximately 180,000 net digital-only subscribers and 230,000 digital-only subscriptions compared with the end of the first quarter of 2022.

Total revenues increased by 11.5% to $555.7 million, driven by digital subscription growth.

The Company added approximately 180,000 net digital-only subscribers and 230,000 digital-only subscriptions compared with the end of the first quarter of 2022.

Operating profit decreased by 29.5% to $51.7 million, mainly due to losses at The Athletic.

Digital subscription revenues increased by 25.5% to $238.7 million.

Total Revenue
$556M
Previous year: $498M
+11.5%
EPS
$0.24
Previous year: $0.36
-33.3%
Digital-Only Subscribers
1.69M
Previous year: 7.13M
-76.3%
Gross Profit
$255M
Previous year: $247M
+3.2%
Cash and Equivalents
$453M
Previous year: $947M
-52.1%
Free Cash Flow
$20.4M
Previous year: $69.2M
-70.6%
Total Assets
$2.51B
Previous year: $2.35B
+7.0%

NYT

NYT

NYT Revenue by Segment

Forward Guidance

The company provided guidance for the third quarter of 2022, anticipating continued growth in digital-only subscription revenues and managing operating costs.

Positive Outlook

  • Digital-only subscription revenues are expected to increase by 21% - 25%.
  • Total subscription revenues are expected to increase by 11% - 13%.
  • The New York Times Group expects digital-only subscription revenues to increase 10% - 14%.
  • The New York Times Group expects total subscription revenues to increase 5% - 7%.
  • Cost growth for The New York Times Group is expected to slow considerably in the second half of 2022.

Challenges Ahead

  • Total advertising revenues are expected to be flat to decrease low-single digits.
  • Digital advertising revenues are expected to decrease 4% - 8% for The New York Times Group.
  • Other revenue is expected to decrease approximately 5%.
  • Operating costs are expected to increase 10% - 15%.
  • The Athletic will have a dilutive impact on a consolidated basis.

Revenue & Expenses

Visualization of income flow from segment revenue to net income