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Dec 29, 2019

NYT Q4 2019 Earnings Report

NYT's Q4 2019 earnings were released, revealing a slight increase in total revenue and a significant rise in digital subscriptions, alongside a decrease in advertising revenue.

Key Takeaways

The New York Times Company reported a 1.1% increase in total revenues for Q4 2019, reaching $508.4 million. Digital-only subscriptions saw substantial growth, with a net increase of 342,000 subscriptions. However, advertising revenues experienced a decline of 10.7%.

Total revenues increased by 1.1% to $508.4 million.

Diluted earnings per share from continuing operations was $0.41, compared to $0.33 in the same period of 2018.

The company added 342,000 net new digital-only subscriptions.

Advertising revenues decreased by 10.7%.

Total Revenue
$508M
Previous year: $503M
+1.1%
EPS
$0.43
Previous year: $0.32
+34.4%
Digital-Only Subscribers
4.4M
Previous year: 3.36M
+30.8%
Gross Profit
$322M
Previous year: $322M
-0.1%
Cash and Equivalents
$230M
Previous year: $242M
-4.6%
Free Cash Flow
$56M
Previous year: $25.2M
+121.7%
Total Assets
$2.09B
Previous year: $2.2B
-4.9%

NYT

NYT

NYT Revenue by Segment

Forward Guidance

The company provided guidance for Q1 2020, expecting subscription revenues to increase in the mid-single digits, digital-only subscription revenue to increase in the high-teens, and advertising revenues to decline approximately 10 percent.

Positive Outlook

  • Total subscription revenues are expected to increase in the mid-single digits.
  • Digital-only subscription revenue is expected to increase in the high-teens.
  • Other revenues are expected to increase approximately 15 percent.
  • Continued investment in the drivers of digital subscription growth.
  • Board of Directors declared a $.06 dividend per share.

Challenges Ahead

  • Total advertising revenues are expected to decline approximately 10 percent.
  • Digital advertising revenue is expected to decrease in the mid-single digits.
  • Operating costs and adjusted operating costs are expected to increase approximately 5 percent to 7 percent.
  • Changes in the business and competitive environment.
  • The impact of national and local conditions and developments in technology.

Revenue & Expenses

Visualization of income flow from segment revenue to net income