New York Times has quarterly revenue below expectations – 05/10/2023 – Market

The New York Times on Wednesday reported quarterly revenue below estimates as the economic slump undermined digital subscriber growth and forced companies to cut advertising spending.

The Times further stated that it expects digital ad revenue to decline in the low-to-mid single digits in the current quarter.

“Advertising continues to face short-term, cyclical challenges,” said Meredith Kopit Levien, chief executive of the New York Times.

The company’s digital ad revenue fell nearly 9% to $61.3 million for the January-March period, while total revenue of $560.7 million was below analysts’ estimates, which projected $571 million. , according to data from Refinitiv.

The publication added 190,000 digital-only subscribers in the first quarter, up from 240,000 in the previous quarter, bringing its total to over 9.7 million. The company has a goal of 15 million subscribers by 2027.

“Our bundle strategy is gaining momentum, engagement metrics are strong, pricing initiatives are consolidating, and we’re slowing cost growth,” said Levien.

The company’s subscription revenue grew nearly 7%, with average revenue for each digital-only subscriber down just 1%, compared with a 7% decline in the prior quarter and an 8% decline a year earlier.

Adjusted earnings came in at $0.19 per share, above estimates of $0.17.

In a separate statement, the Times said it had appointed chief strategy officer William Bardeen as its chief financial officer, replacing Roland Caputo, who had announced his retirement in December.