The New York Times Company ended Q1 2021 with more than 7.8 million paid subscriptions across their digital and print products. Furthermore, the company tallies more than 100 million registered users. Also, the publisher reaches an average weekly audience of 76 million readers.
Meredith Kopit Levien, President and Chief Executive Officer, The New York Times Company, see room to grow. The CEO believes there is market of at least 100 million people willing to pay for English language journalism.
“We recorded a significant improvement in profitability in the first quarter, thanks to the size and strength of our current digital subscription base and an improvement in digital advertising. Total digital subscription revenue grew by 38 percent and we added 301,000 net new digital subscriptions across News, Cooking, Games and Audm, with 167,000 net new digital News subscriptions.”
Meredith Kopit Levien, President and Chief Executive Officer, The New York Times Company
Levien reveals that audiences declined year over year in February and March. This was due to historic highs last year as the pandemic lock downs set in. Additionally, there were fewer net subscriptions in that frame. The CEO expects “moderated growth to continue through the second quarter.” Total net subscriptions added for the year should be similar to 2019. To be clear, that year was their best subscription adds year prior to 2020.
Revenue
Total revenues for Q1 2021 increased 6.6% to $473.0 million from $443.6 million in the first quarter of 2020. Subscription revenues increased 15.3% to $329.1 million, advertising revenues decreased 8.5% to $97.1 million and other revenues decreased 10.0% to $46.8 million.
Revenue from digital only products surged 38.1% to $179.6 million. This includes subs to the news product, Games, Cooking and Audm. The latter business is a startup the company acquired last year. It turns news articles into audio.
Meanwhile, print subscription revenues decreased 3.8% to $149.5 million. Print revenue fell due to lower single copy and bulk sales. However, revenue from domestic home delivery subs grew 0.5%.
New York Times Subscription Fact Box
- 7,816,000 total subscriptions across print and digital products
- 6,991,000 paid digital only subscriptions, increase of 301,000 compared to end of Q4 2020. Also, a 1,990,000 net increase compared with end of Q1 2020.
- The 301,000 total net addition breakout
- 167,000 from the digital news product
- 134,000 from Cooking, Games and Audm products
Advertising
Q1 2021 digital advertising revenue increased 16.3%. Print advertising revenue declined by 31.6%. Digital ad revenue totaled $59.5 million for the quarter, which is 61.3% of total ad revenue for the company. A year ago, this digital segment was 48.2% of total.
The company says the digital ad growth was due to “higher direct-sold advertising, including traditional display and podcasts.” Also. favorable comparison to the decline in ads at the start of the pandemic a year ago.
Print ad revenues declined due to a hit in the entertainment, travel and luxury categories. These types of businesses were impacted significantly by the pandemic.
Outlook
Compared to Q2 2020, the company expects Q2 2021 subscription revenue to increase 15%. Digital only sub revenue should increase by 30%.
Total ad revenues in Q2 2021 are expected to increase 55%-60% compared to the same quarter a year ago. Digital ad revenue specifically should pop 70%-75% compared to Q2 a year ago. This is due to favorable comparison to the pandemic impacted ad market from a year ago.
