Business

NYT hits 10 million signups goal, ends up on The Athletic

The New York Times Company hit its goal of 10 million subscriptions ahead of time, the company said on Wednesday, having backed significantly from the 1.2 million it raised with its purchase of sports news website The Athletic. .

$550 million deal for The Athletic, that’s announced last monthwas completed on Tuesday, the company said.

In the last three months of 2021, prior to Athletic’s acquisition, The Times added 375,000 digital subscriptions, the company said in its quarterly earnings report. Those additions include 171,000 to its core news product, which means the majority goes to The Times’ other digital offerings: Games, including crosswords; Cooking, its recipes app; Wirecutter, its product demo site; and Audm, which produces audio versions of text-based journalism.

By the last week of December, The Times had nearly 8.8 million subscriptions. Nearly 5.9 million goes to digital news, more than two million goes to other digital products, and about just under 800,000 goes to print.

The Times also announced a new goal on Wednesday: It said the goal would be at least 15 million subscribers by the end of 2027.

A subscription can account for more than one subscription. The subscriber metric, which will be included in The Times’ next earnings report, reflects the company’s desire to market a number of digital subscriptions as a aggregator not only for news but also and other needs and wants.

Meredith Kopit Levien, the company’s president and chief executive officer, said in a statement that The Times executives believe there are “at least 135 million” potential subscribers in the United States and around the world. world – adults “pay or are willing to pay for one or more subscriptions to English-language news, sports news, quizzes, recipes, or expert shopping tips.”

The Times had previously set a target of 10 million subscriptions by 2025, three years ago, when it had 4.3 million. As subscriptions for The Times’ core digital news app continue to grow, and as Games and Cooking each have more than a million subscriptions, it’s clear the company will soon exceed its target.

Then, last month, The Times said it would buy The Athletic, home to 400 journalists from more than 200 sports teams in the US, UK and Europe, in an all-cash deal worth 550 million USD. The Times said on Wednesday that the deal was financed with “cash available,” meaning no loan was required.

In addition to acting on The Athletic, The Times said this week that it is buying back viral online quiz Wordlewill be added to the Games app (and remain free, at least initially).

For the fourth quarter of 2021, the company reported adjusted operating profit of $109.3 million, up 12 percent from a year earlier, and revenue of $594.2 million, up 16 percent. 7 percent. Operating expenses increased almost at the same rate, to $500.1 million. Subscription revenue increased 11.1 percent to $351.2 million.

For the year, revenue jumped 16.3% to $2.1 billion – in 2021, The Times becomes the first year to hit $2 billion since 2012. Operating expenses increased 12.2%, to 1.2%. 0.8 billion USD. While subscription revenue rose 13.9 percent to $1.4 billion, the year also represented a rebound in advertising, where revenue rose to $497.5 million, up 26.8 percent. compared to 2020, although still 6.2 percent lower than pre-pandemic in 2019.

The company said it expects subscription revenue to grow 11 to 15 percent in the current quarter, which includes two months with The Athletic as part of the company. The Times added that it expects digital subscription revenue to grow 23 to 28 percent and ad revenue to grow 17 to 21 percent. The company says costs will increase by 18 to 22 percent.

The company’s board of directors increased the dividend of 2 cents per share to 9 cents and authorized a $150 million worth of stock buybacks, the company said. While the buyback will only affect Class A shares, which are offered to the public, the dividend will apply to both those shares and Class B shares, which are primarily owned by the Ochs family- Sulzberger controls The Times.

https://www.nytimes.com/2022/02/02/business/media/nyt-earnings-q4-2021.html NYT hits 10 million signups goal, ends up on The Athletic

Fry Electronics Team

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