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New York Times Issues Q3 Revenue Outlook; Q2 Profit Tops Estimates

(RTTNews) - The New York Times Company (NYT) said, for third quarter, total subscription revenues are estimated to increase approximately 10 percent compared with the third quarter of 2019, with digital-only subscription revenue to increase approximately 30 percent. Total advertising revenues are expected to decline approximately 35 percent to 40 percent, with digital advertising revenue to decrease approximately 20 percent, largely due to the impact from the COVID-19 pandemic. Other revenues are projected to decline approximately 10 percent year-on-year.

Second quarter adjusted earnings per share from continuing operations was $0.18 compared to $0.17, a year ago. On average, six analysts polled by Thomson Reuters expected the company to report profit per share of $0.01, for the quarter. Analysts' estimates typically exclude special items. Adjusted operating profit decreased to $52.1 million from $55.6 million, as higher digital-only subscription revenues and lower costs were more than offset by lower advertising revenues.

Second quarter total revenues decreased 7.5 percent to $403.8 million from $436.3 million, a year ago. Analysts expected revenue of $386.92 million for the quarter. Subscription revenues increased 8.4 percent, advertising revenues decreased 43.9 percent and other revenues decreased 5.0 percent.

"In the second quarter, we added 493,000 net new subscriptions to our core news product and 176,000 additions to other digital products, for a total of 669,000 net new digital subscription additions. At the end of Q2, the company had 5.7 million total digital-only subscriptions and 6.5 million total subscriptions, well on the way to that goal of 10 million subscriptions I set for the company last year," said Mark Thompson, CEO.

As of June 28, 2020, the company had cash and marketable securities of $756.7 million, an increase from $683.9 million as of December 29, 2019. The company has a $250.0 million revolving line of credit through 2024.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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