What To Expect From New York Times’ Q1 Earnings

The New York Times Company (NYSE:NYT) is scheduled to report its first quarter results on Wednesday, May 3. A larger digital subscriber base helped the company stabilize its circulation revenues in fiscal 2016. In Q4 2016, NYT’s stock price climbed more than 20% following the U.S. presidential elections, which resulted in unprecedented growth in digital subscriptions, with digital-only subscription revenue growing strongly at 22% year-over-year (y-o-y) to $64 million in the fourth quarter. Consequently, the media company’s total circulation revenues increased 5% y-o-y in the quarter. However, its print circulation and the related ad revenue continued to decline, reflecting the secular downturn in the print industry.

Q1 Guidance

In the first quarter, NYT plans to ride the elevated growth of its digital subscriptions, and expects strong numbers in the digital subscription business. NYT expects approximately 6% y-o-y growth in circulation revenues, driven by continued strength in digital subscription revenues, which are expected to grow around 25% y-o-y. For Q1 2017, the company expects strong growth in net new subscribers – more than 200,000 net additional subscriptions to its digital news products and approximately 15,000 net subscribers to its digital crossword product. However, the company expects its overall advertising revenues to decline, despite a growth projection of around 10-15% y-o-y in digital advertising. For the full year, the company expects capital expenditures of approximately $50 million due to reconfiguration of its office space.

Have more questions? Please refer to our complete analysis for New York Times 

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