The New York Times Co. (NYT) reported better-than-expected third-quarter financial results as its total number of subscribers surpassed 10 million for the first time.
The subscriber growth beings the publisher of The New York Times newspaper closer to its goal of 15 million paid subscriptions by the end of 2027.
For this year’s third quarter, the company reported earnings per share (EPS) of $0.37 U.S., which was better than the $0.29 U.S. consensus expectation of analysts.
Revenue in Q3 grew 9.3% from a year earlier to reach $598.3 million U.S., topping forecasts of $589.8 million U.S.
The New York Times Company said that it added 210,000 net digital-only subscribers in the three months ended Sept. 30, giving it 9.41 million digital subscribers, plus 670,000 print subscriptions.
The Times is focused on getting subscribers to sign up for more than one of its offerings, which include the core newspaper, as well as Cooking, Games, and the sports site The Athletic.
The company said that 3.8 million of its digital-only subscribers are now subscribed to at least two of its product offerings.
The Athletic sports site, which the Times acquired in 2022 for $550 million U.S., reported an operating loss of $7.9 million U.S. in Q3, which was an improvement from a $12.1 million U.S. loss a year earlier.
The Times has said that it will take three years for The Athletic to turn profitable.
Despite a challenging advertising environment, The Times posted a 6.7% year-over-year increase in digital ad revenue during Q3, coming in at $75 million U.S.
Total advertising, digital and print combined, rose 6% to $117.1 million U.S. in Q3.
The Times, like other newspapers, continues to lose print subscribers, noting that it has lost 70,000 in the past year, though many have converted to a digital subscription.
Looking ahead, the Times forecasts total subscription revenue for this year to increase 8% to 11% from a year ago, as well as a single-digit percentage increase in digital ad revenue.
The stock of The New York Times Co. has increased 26% this year and now trades at $41.61 U.S. per share.