in the Third Quarter Revenue ReportThe New York Times reported that 8.38 million subscribers were paid for printing and digital products, including 7.6 million paid digital-only subscriptions. This includes a new chapter to reach 1 million international digital subscribers. During the quarter, the company added 455,000 net new digital subscriptions, including 320,000 for news and 135,000 for games, cooking and wire cutting, and The Times product review platform.

“This has been our best third-quarter performance in both news and general subscription increases since the introduction of the digital payment model a decade ago, and is the best-ever quarterback for digital subscriptions outside of 2020,” said Meredith Kopit. Levine, president and CEO of the New York Times November 3, 2021 Revenue Release.

Image courtesy of The New York Times.

According to Copt Levine, the “busy news period” is partly responsible for the company’s subscription growth, but the media company has taken steps to improve conversions and better show subscribers the benefits of subscriptions.

“We started in the quarter Paid subscriptions for Wirecutter And plans to audio and test digital production experiences For children In the coming months, “Copt Levine added,” our quarterly growth will make more sense to many people in a variety of news and life needs: our first strategy is strength, sustainable quality, independent journalism, and long-term potential.

Highlights of the third quarter

Other highlights of the third quarter include the following:

  • The quarterly revenue was $ 509.1 million, subscription revenue was $ 342.6 million (an increase of 13.8 percent year-on-year), advertising revenue was $ 110.9 million (an increase of 39.9 percent year-on-year) and $ 55.6 million. Revenue (19.3% year-over-year increase).
  • Subscriber revenue increased during the quarter due to the growth of digital-only products, including news production, games, cooking, and so on. Odm And Wire cutter. Subscriptions that have gone from promotional prices to high prices have also contributed to the growth of subscription revenue.
  • Publishing revenue was $ 144.0 million, with domestic supply revenue declining and single-copy sales decreasing by 1.2 percent.
  • Advertising revenue continued to grow with digital advertising by 40.2% and 39.4%, respectively. Advanced digital advertising, including high-quality advertising, traditional display ads, and podcast advertising.
  • Publishing has often been added to the luxury and entertainment categories, with categories imported by luxury brands refusing to promote the epidemic during Kovid.
  • The total operating expenses for the quarter were $ 460.1 million, an increase of 18.8% year-over-year.
  • The quarterly net income was $ 54.7 million, or $ 0.32 per share, of $ 33.6 million per share, or $ 0.20 per share in Q3 2020.

Outlook

The company has issued the following guidelines for the fourth quarter of 2021.

  • Total subscription revenue is projected to increase by about 12 percent compared to the fourth quarter of 2020.
  • Digital-only subscription revenue increases by approximately 25%.
  • Gross advertising and digital advertising revenue will increase by the middle of the decade compared to the fourth quarter of 2020.
  • Compared to Q4 2020, other revenues will increase by approximately 15%.
  • As the company continues to invest in the growth of digital subscriptions, operating costs and adjusted operating costs will increase from 17% to 20%.
  • Capital expenditures in the fourth quarter will be around $ 50 million.

Take an internal adult

Several years ago, the New York Times set a target of 10 million subscribers by 2025. They will hit that target by 2025, especially if they continue on their way. They continue to do well in news production, but are also doing their part by lifting their subscriber products (Cooking, Games, Audm, Wirecutter). If The Times continues to focus on the subscriber’s experience and identify future interests, their efforts to drive conversions will be fruitful. Although Copt Levine has only been in the lead for a year, she continues the company’s journey to subscription-first place, becoming a model for other subscription companies.