NYT Q3 2023 Earnings Report
Key Takeaways
The New York Times Company announced positive third-quarter 2023 results, marked by a substantial increase in total subscribers, exceeding 10 million, driven by bundle and multi-product offerings. Digital-only ARPU growth, coupled with robust digital subscription revenues, contributed to a 9.3% increase in total revenues. Strategic investments in journalism and product development drove adjusted operating costs up, while operating profit saw a significant year-over-year increase due to revenue growth and cost management.
Total subscribers surpassed 10 million, with approximately 210,000 net digital-only subscribers added.
Digital-only ARPU increased to $9.28, marking the fifth consecutive quarter of growth.
Digital subscription revenues grew by 15.7% year-over-year.
Advertising revenues increased by 6.0% year-over-year, driven by digital advertising.
NYT
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NYT Revenue by Segment
Forward Guidance
The company provided guidance for the fourth quarter of 2023, anticipating revenue increases in digital-only and total subscriptions but expects a decrease or slight increase in advertising revenues. Adjusted operating costs are projected to remain relatively stable.
Positive Outlook
- Digital-only subscription revenues are expected to increase by 6-9% (or 13-16% on an adjusted basis).
- Total subscription revenues are expected to increase by 2-5% (or 8-11% on an adjusted basis).
- Digital advertising revenues are expected to decrease low-single-digits to increase mid-single digits (or increase low-to-high-single-digits on an adjusted basis).
- Total advertising revenues are expected to decrease mid-single-digits to increase low-single-digits (or decrease low-single-digits to increase mid-single-digits on an adjusted basis).
- Other revenue is expected to decrease low-single-digits to increase low-single-digits (or increase low-to-mid-single-digits on an adjusted basis).
Challenges Ahead
- The fourth quarter of 2022 included an additional six days due to a change in the company's fiscal calendar, affecting year-over-year comparisons.
- Guidance is complex due to the need to adjust for the extra week in the previous year.
- The company expects approximately $80 million in depreciation and amortization on a pre-tax basis.
- The company expects approximately $20 million in interest income and other, net on a pre-tax basis.
- The company expects approximately $35 million in capital expenditures.
Revenue & Expenses
Visualization of income flow from segment revenue to net income