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New York Times Q1 Results Top Estimates

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The New York Times Co. (NYT) on Wednesday reported a 37.6 percent increase in profit for the first quarter from last year. Quarterly revenues increased 6.1 percent as growth in subscription and other revenue offset a slight decline in advertising revenue.

Both adjusted earnings per share from continuing operations and quarterly revenues topped analysts' expectations.

Mark Thompson, president and chief executive officer, New York Times Company, said, "... we're continuing to optimize our business to deliver on our goal of reaching 10 million total subscriptions by 2025."

Looking ahead for the second quarter of 2019, the company expects total subscription revenues to increase in the low- to mid-single digits compared with the second quarter of 2018, with digital-only subscription revenue will increase in the mid-teens. The company expects seasonally slower growth in the number of paid digital-only subscriptions.

It is expected that total advertising revenues in the second quarter of 2019 will be about flat compared with the second quarter of 2018, with digital advertising revenue expected to increase in the mid-teens.

Other revenues in the second quarter of 2019 are expected to increase about 35 percent compared with the second quarter of 2018.

The company reported that net income attributable to common stockholders for the first-quarter rose 37.6 percent to $30.16 million from last year's $21.91 million, with earnings per share improving to $0.18 from $0.13 in the previous year.

Adjusted earnings per share from continuing operations for the first-quarter was $0.20 compared to $0.17 in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.10 per share for the first-quarter. Analysts' estimates typically exclude special items.

Total revenues from continuing operations for the first quarter increased 6.1 percent to $439.06 million from $413.95 million in the prior year. Analysts expected revenue of $435.78 million for the quarter.

Subscription revenues increased 3.9 percent, while advertising revenues decreased 0.4 percent and other revenues increased 55.8 percent.

Other revenues rose $15.5 million, or 55.8 percent in the first quarter primarily as a result of growth in commercial printing operations and rental revenue from New York headquarters building.

Paid digital-only subscriptions totaled about 3.58 million at the end of the first quarter of 2019, a 28.7 percent increase from last year.

In the pre-market trade, NYT is trading at $33.75, up $0.90 or 2.74 percent.

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