The New York Times (NYT) Q3 2016 Earnings Call

posted in: Earnings Call, Notes | 0

Mark J. T. Thompson – President, Chief Executive Officer & Director

Digital subscriptions and advertising are up

“We saw remarkable gains in digital consumer business with a net increase of 116,000 subscriptions to our news products, more than twice as many as the same quarter last year and far more than any quarter since the pay model launched in 2011. Revenue from digital news subscriptions grew 15% year-over-year…It was also an extremely strong quarter for digital advertising, with revenue up 21% compared to the same quarter last year. ”

…as print suffers

“It was a much tougher quarter for print advertising, both for us, we were down 19%, and the rest of the industry. Print advertising is a much smaller part of our business today than it once was, accounting for just 22% of total revenue in the quarter. ”

They will not give up on print just yet

“Now we don’t believe that print advertising is going to disappear anytime soon, but the strength of the modern print product is of immense…we’ve been able to maintain very solid revenues from the print product because of our pricing power even though we’ve seen some attrition in numbers…And you heard us say that in the present quarter, print advertising represented 22%, only 22% of the company’s revenues. We want to defend it, and we want to fight for every dollar we can get from print advertising.”

James M. Follo – Chief Financial Officer & Executive Vice President

Print will continue to decline

“Lower print advertising revenue was mainly due to declines in The New York Times as most major categories experienced declines. We expect the challenging print advertising environment to continue in the fourth quarter, with print advertising expected to decline at a rate similar to the third quarter.”