The New York Times Company (NYT) has reported a rise in third-quarter profits as its number of paid subscribers surpassed 11 million for the very first time.
The publisher of The New York Times said it added 260,000 paid digital subscribers in this year’s third quarter, pushing it to a total of 11.09 million subscribers. The Times has set itself the goal of achieving 15 million subscribers by the end of 2027. More than 10 million of its subscribers are digital only.
In terms of its Q3 financial results, The New York Times Co. reported earnings per share (EPS) of $0.45, which topped the consensus forecast of $0.41. Revenue in the quarter totaled $640.2 million, which was slightly below forecasts of $641 million. Sales were up 7% from a year earlier.
The Athletic Turns Profitable
The Athletic, a sports news website that The Times acquired in 2022, made a quarterly profit for the first time since the purchase occurred. The Athletic’s operating profit for the third quarter was $2.6 million compared to a loss of $7.9 million a year ago.
Digital subscription revenue at the company rose 14.2% from a year earlier during Q3 while digital advertising revenue increased 8.8% year-over-year. The earnings report was overshadowed by news that the Times Tech Guild, which represents more than 600 software developers and data analysts at The New York Times, have gone on strike. The strike could impact the newspaper’s U.S. election coverage.
NYT stock has increased 9% so far in 2024.
Is NYT Stock a Buy?
The stock of The New York Times Co. has a consensus Moderate Buy rating among six Wall Street analysts. That rating is based on four Buy and two Hold recommendations assigned in the last three months. The average NYT price target of $57.17 implies 8.54% upside from current levels.
