New York Times (NYT) reported earnings on Wed 7 Aug 2019 (b/o)

** charts after earnings **

 

New York Times beats by $0.01, reports revs in-line; sub revs and digital subs in line with guidance

Reports Q2 (Jun) earnings of $0.17 per share, excluding non-recurring items, $0.01 better thanthe S&P Capital IQ Consensus of $0.16; revenues rose 5.2% year/year to $436.3 mln vs the $439.2 mln S&P Capital IQ Consensus.

Operating profit decreased to $37.9 mln in the second quarter of 2019 from $40.0 mln in the same period of 2018 and adjusted operating profit (defined below) decreased to $55.6 mln from $59.4 mln in the prior year, as higher costs more than offset higher digital-only subscription revenues, other revenues and digital advertising revenues.

Subscription revenues increased 3.8% (guidance called for low to mid single digits). Revenue from the Company's digital-only subscription products increased 14.1% compared with the second quarter of 2018, to $112.6 mln (guidance called for mid teens increase).

Paid digital-only subscriptions totaled approximately 3,780,000 at the end of the second quarter of 2019, a net increase of 197,000 subscriptions compared with the end of the first quarter of 2019 and a 30.7 percent increase compared with the end of the second quarter of 2018.

Outlook: Co said "Total subscription revenues in the third quarter of 2019 are expected to increase in the low- to mid-single digits compared with the third quarter of 2018, with digital-only subscription revenue expected to increase in the mid-teens.  Total advertising revenues in the third quarter of 2019 are expected to decline in the high-single digits compared with the third quarter of 2018, with digital advertising revenue expected to decrease in the high-single digits. We expect a more challenging second half of 2019 in digital advertising revenue as a result of comparisons against strong performance in the same period in 2018."

10:17

NYT New York Times shares down 16% following Q2 earnings which is typically seasonally weak; Q2 operating profit saw decline of -5% yr/yr, while subscription revs were in line with guidance