The New York Times Company added 420,000 digital-only subscribers in the third quarter, bringing its total paid subscriber base to 13.8 million. The increase puts the company roughly on track to reach its goal of 15 million subscribers by the end of 2027 across its news products, Wirecutter, Cooking, Games and The Athletic.
The company added about 1.46 million digital-only subscribers over the past 12 months. That follows a slower second quarter, when it gained 280,000.
Third-quarter revenue rose 9.7 percent year over year to $768.5 million. Adjusted operating profit increased to $149.6 million from $131.4 million a year earlier. Adjusted operating costs grew 8.7 percent to $618.9 million, within the company’s forecast range of 8 to 9 percent. The increase reflected higher compensation and benefits, general and administrative expenses, and marketing and promotion costs.
Revenue from digital-only subscriptions climbed 14.6 percent to $421.3 million. Average revenue per digital-only user was $9.93, slightly higher than in the same quarter last year. Print subscriptions continued to decline: the company had 540,000 print subscribers, down from 570,000 a year earlier.
Digital advertising revenue rose 12 percent to $109.9 million, while revenue from affiliate, licensing and other categories increased 6.2 percent to $78.4 million. Chief Executive Meredith Kopit Levien said subscriber growth was supported by engagement and retention, and that the company increased profit while continuing to invest in areas such as video.
At the end of September, The Times had $1.26 billion in cash and marketable securities. For the fourth quarter, it forecast digital-only subscription revenue growth of 12 to 15 percent year over year and a high-single-digit to low-double-digit increase in digital advertising revenue. It expects adjusted operating costs to rise 6 to 8 percent.
Sources: The New York Times Business.