New York Times Co (NYSE: NYT) announced its Q3 earnings results today, revealing an impressive growth in total subscribers exceeding 10 million, following an increase of roughly 210,000 net digital-only subscribers since Q2 of 2023. The company attributes this significant uptick to its successful bundle offerings and multi-product subscriber additions.
The digital-only Average Revenue Per User (ARPU) continued its upward trend for the fifth consecutive quarter, hitting $9.28. This growth was propelled by a shift from promotional pricing to higher rates for long-term non-bundle subscribers, resulting in a 15.7% YoY surge in digital subscription revenues.
Advertising revenues also experienced a rise, increasing by 6.0% compared to the same period last year. Digital advertising revenues grew by 6.7%, supported by the strong performance of core premium display advertising products. Despite operating costs swelling by 7.7% YoY due to investments in journalism and product development, NYT managed to report a substantial 24.6% YoY increase in operating profit ($63.6 million) and a 30.1% rise in adjusted operating profit ($89.8 million).
This growth in profits was driven by revenue growth and effective cost-management strategies. Diluted Earnings Per Share (EPS) increased to $.32 (up from $.22), with adjusted diluted EPS growing to $.37 (up from $.24).
The company's net cash from operating activities for the first nine months of 2023 reached $224.1 million, with free cash flow surging to $207.6 million, marking a significant increase from $57.2 million during the same period of 2022. The company noted that this surge was partly due to a one-time payment related to The Athletic Media Company's stock options in the previous year.
InvestingPro Insights
Adding to the impressive Q3 earnings results of the New York Times Co (NYSE: NYT), a glance at the InvestingPro Data further highlights the company's strong financial position. With an adjusted market cap of $7230M and a P/E ratio of 41.14, the company's valuation appears to be on the high side, reflecting its robust performance and investor confidence.
The company's revenue over the last twelve months as of Q2 2023 stood at $2338.41M, marking a growth of 7.85% over the period. This growth, coupled with an operating income of $266.04M, signifies the company's ability to effectively manage its costs while increasing its revenue streams.
InvestingPro Tips further emphasizes the company's financial strength. The New York Times Co holds more cash than debt on its balance sheet, indicating a healthy liquidity position. Moreover, the company has been raising its dividend for 5 consecutive years, demonstrating its commitment to returning value to its shareholders.
For those interested in deepening their understanding of the financial landscape, InvestingPro offers an array of additional tips and insights tailored to a wide range of companies. This includes the New York Times Co, which has 11 more InvestingPro Tips available, providing investors with an even more comprehensive view of the company's financial health and performance.
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