Business Today

The New York Times profits increased as online customers increased

The New York Times Company gained over 1 million ‘digital-only subscribers’ last year. The number of online subscribers of this famous media has now exceeded 88 lakhs. And in one year, this company has earned about 11 percent more profit.

The New York Times reported that their digital subscribers increased by 240,000 in the fourth quarter of last year. If this continues, by the end of 2027, it will be possible to acquire one and a half million digital subscribers.

In addition, the company acquired the subscription-based sports website Athletic in February last year. Athletic owns close to 10 lakh online subscribers. If this number is added, the current number of subscribers of the New York Times Company will exceed 96 lakhs.

In contrast, in 2021, the company’s print newspaper subscribers were 795,000. Last year, that number dropped to 730,000. This means that the number of consumers who spend money to read The New York Times online is increasing.

Many media outlets have been at risk of losing profits in recent months as print subscribers begin to decline. Even in such a situation, the profit of the New York Times has increased compared to last year due to the increase in online customers.

In 2022, the New York Times Company earned $347.9 million in operating profit. In all, the company’s annual revenue last year was $2.3 billion, up 11.3 percent from the previous year.

New York Times CEO Meredith Kopit Levien said in a statement last Wednesday that since 2020, their digital subscriber base has been steadily increasing. This is their second best year in terms of incremental digital subscriber growth.

Meanwhile, with the increase in digital subscribers, the income from subscription is also increasing. In the first quarter of 2023, the company expects revenue from digital subscriptions to grow 13 to 16 percent year-over-year, although they forecast a decline in advertising revenue.

The New York Times’ operating expenses rose nearly 10 percent in the latest quarter. Out of this, technology expenses increased by 30 percent, but sales and marketing expenses decreased by 36 percent.