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Sep 26, 2021
NYT Q3 2021 Earnings Report
NYT's Q3 2021 earnings were released, showing strong growth in digital subscriptions and advertising revenue, leading to increased profitability.
Key Takeaways
The New York Times Company reported a strong third quarter with significant growth in digital subscriptions, particularly in News and other digital-only products. Total revenues increased by 19.3%, driven by subscription and advertising revenue growth. The company added 455,000 net new digital subscriptions and surpassed one million international digital subscriptions.
Added a total of 455,000 net new digital subscriptions, including 320,000 for News and 135,000 for Games, Cooking and Wirecutter.
Reached over one million international digital subscriptions.
Total revenues grew 19 percent due to strong digital subscription and total advertising revenue growth.
Launched paid subscriptions to Wirecutter.
Revenue by Segment
Forward Guidance
The company expects subscription revenues to increase by approximately 12% in Q4 2021, with digital-only subscription revenue expected to increase by approximately 25%. Total advertising and digital advertising revenues are expected to increase in the mid-teens. Operating costs are expected to increase by approximately 17% to 20%.
Positive Outlook
- Total subscription revenues in the fourth quarter of 2021 are expected to increase approximately 12 percent compared with the fourth quarter of 2020.
- Digital-only subscription revenue expected to increase approximately 25 percent.
- Total advertising and digital advertising revenues in the fourth quarter of 2021 are expected to increase in the mid-teens compared with the fourth quarter of 2020.
- Other revenues in the fourth quarter of 2021 are expected to increase approximately 15 percent compared with the fourth quarter of 2020.
- Company continues to invest in the drivers of digital subscription growth.
Challenges Ahead
- The Company expects the rate of digital advertising growth to slow compared with the third quarter, partially as a result of more difficult comparisons in the fourth quarter.
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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