The New York Times Company Sees Strong Subscriber Growth in Q2 2023

The New York Times Company Reports Strong Subscriber Growth in Q2

The New York Times Company announced on Wednesday that it added approximately 300,000 new digital subscribers in the second quarter of the year, marking a significant milestone that contributed to a 13.6 percent year-over-year increase in earnings. This growth underscores the company’s ability to attract and retain a diverse readership in an evolving digital landscape.

For the quarter spanning April through June, the company’s adjusted operating profit climbed to $104.7 million, up from $92.2 million in the same period last year. Additionally, overall revenue saw an increase of 5.8 percent, reaching $625.1 million compared to the prior year.

As of now, The Times boasts over 10.8 million total subscribers, with approximately 10.2 million of these being digital-only subscribers. The company has set an ambitious target of reaching 15 million subscribers by the end of 2027. A notable trend among the new digital subscribers is that nearly half are opting for multiple products offered by The Times, including its renowned news coverage, engaging games, curated recipes, the Wirecutter review site, and The Athletic, a dedicated sports news platform.

Meredith Kopit Levien, the chief executive of The Times Company, emphasized in her statement that the interplay between The Times’s esteemed journalism and its diverse lifestyle products provides “complementary offerings” that present multiple avenues for growth. She stated, “Together we believe these make The Times resilient in a changing media landscape and well positioned for continued value creation.”

Subscription revenue for the quarter increased by 7.3 percent, totaling $439.3 million, when compared to the previous year. In terms of advertising, total revenue rose by 1.2 percent, reaching $119.2 million. Digital advertising revenue experienced a notable increase of 7.8 percent, amounting to $79.6 million, while print advertising saw a decline of 10 percent, totaling $39.6 million.

Adjusted operating costs rose by 4.4 percent in the quarter, reaching $520.4 million, up from $498.7 million a year earlier. The company attributed this rise to increased expenses related to journalism, product development, administrative costs, and ongoing litigation against tech giants Microsoft and OpenAI.

The Athletic, which was acquired by The Times for $550 million in 2022, continues to navigate financial challenges but reported a reduction in losses, which shrank to $2.4 million in the recent quarter, compared to $7.8 million in the same timeframe last year. Revenue for The Athletic surged to $40.5 million, reflecting a robust 33.4 percent increase from the previous year, driven by a rise in subscriber numbers and boosted display advertising revenue.

Currently, The Athletic has amassed 5.3 million digital-only subscribers, which includes those with standalone subscriptions as well as those accessing it through a bundle with The Times. This figure has risen from 3.6 million compared to the same period last year.

Looking ahead, the company anticipates a positive outlook, forecasting growth in both subscription and advertising revenues across The Times Company for the third quarter of the year.