The “paper of record” publisher has been bucking the downturn in print media that has been accelerating over the past decade. Through a successful online subscription model, NYT has done so by diversifying into podcasts, video, and other technologies that complement the reporting and writing that appear in its trademark newspaper and on its website.
The New York Times announced that it now has 100 million registered users and 7.8 million paid subscribers across digital and print products when reporting its recent first-quarter earnings. The company has a goal of reaching 10 million paid subscribers by 2025.
In the most recent quarter, digital subscriptions were the largest source of revenue for the business, raking in $180 million, a whopping 38.1% year-over-year increase. This compares to print subscription sales, which totaled $149 million and were down 3.8% versus the prior-year period.
Sales in digital advertising soared 16.3% in the quarter to reach $59 million, and it now accounts for 61% of all advertising revenue for the company. As print advertising continues its secular decline (down 31.6% in the quarter), expect digital’s share to keep marching higher.
NYT stock has fallen 24% to around $42 a share after reaching a 52-week high of $58.73 at the end of January. Investors should buy the dip before the stock rebounds higher. Investors should be talking about this powerful news organization more than they are. It’s been a winning stock for years, and it’s ready to continue this performance going forward.
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