Pandemia brings down NYT Q2 revenues by US$ 33 million

NYT’s digital revenue overtakes print for the first time

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NYT
A total of 669,000 net new digital subscriptions were added by TNYT

The New York Times Company has, for the first time, reported higher revenues from its digital business than its print operations, it said in its second-quarter results report. Nevertheless, total revenues for the second quarter of 2020 decreased by 7.5% to US$ 403.8 million from US$ 436.3 million in the second quarter of 2019. Subscription revenues increased by 8.4%, advertising revenues decreased 43.9%, and other revenues decreased by 5%.

“The last full quarter of my stint as CEO of The Times was also one of the most significant. We posted our best ever results for new digital subscriptions, and for the first time in our history, total digital revenue exceeded print revenue – a key milestone in the transformation of The New York Times and a testament to how much we’ve achieved over the past eight years,” Mark Thompson, president and chief executive officer, The New York Times Company, said.

The New York Times reported US$ 185.5 million in revenues from digital subscriptions and advertisements, compared to US$ 175.4 million in revenues from print subscriptions and advertisements. In the year-ago quarter, the company reported US$ 220.56 million in print subscription and ad revenues and US$ 170.66 million in digital subscription and ad revenues.

In the second quarter, TNYT added 493,000 net new digital subscriptions to its core news product and 176,000 additions to other digital products, for a total of 669,000 net new digital subscription additions. At the end of Q2, it had 5.7 million total digital-only subscriptions and 6.5 million total subscriptions. Thompson said The New York Times is well on the way to the goal of 10 million subscriptions that he set for the company last year.

Pandemic writ large on Q2 revenues

Second-quarter digital advertising revenue decreased by 31.9%, while print advertising revenue fell 55%. Digital advertising revenue was US$ 39.5 million, or 58.3% of total company advertising revenues, compared with US$ 58.0 million, or 48.1%, in the second quarter of 2019. Digital advertising revenue decreased primarily due to the lower demand for direct-sold advertising as a result of the Covid-19 pandemic. Print advertising revenue decreased as the pandemic further accelerated secular trends, mainly impacting the entertainment, luxury, and technology categories.

The New York Times expects total subscription revenues in the third quarter of 2020 to increase by approximately 10% compared with the third quarter of 2019, with digital-only subscription revenue expected to increase by about 30%.

Total advertising revenues in the third quarter of 2020 are expected to decline by approximately 35 to 40% compared to Q3 of 2019. Digital advertising revenue is expected to decrease by about 20% compared to the previous year’s Q3, primarily due to the impact of the Covid-19 pandemic.

In 2024, we are looking at full recovery and growth-led investment in Indian printing

Indian Printer and Publisher founded in 1979 is the oldest B2B trade publication in the multi-platform and multi-channel IPPGroup. It created the category of privately owned B2B print magazines in the country. And by its diversification in packaging, (Packaging South Asia), food processing and packaging (IndiFoodBev) and health and medical supply chain and packaging (HealthTekPak), and its community activities in training, research, and conferences (Ipp Services, Training and Research) the organization continues to create platforms that demonstrate the need for quality information, data, technology insights and events.

India is a large and tough terrain and while its book publishing and commercial printing industry have recovered and are increasingly embracing digital print, the Indian newspaper industry continues to recover its credibility and circulation. The signage industry is also recovering and new technologies and audiences such as digital 3D additive printing, digital textiles, and industrial printing are coming onto our pages. Diversification is a fact of life for our readers and like them, we will also have to adapt with agility to keep up with their business and technical information needs.

India is one of the fastest growing economies in nominal and real terms – in a region poised for the highest change in year to year expenditure in printing equipment and consumables. Our 2024 media kit is ready, and it is the right time to take stock – to emphasize your visibility and relevance to your customers and turn potential markets into conversations.

– Naresh Khanna

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