New York Times Saw Q3 Subscription Surge, Credits Success To Multi-Product Bundle

New York Times Co NYT reported third-quarter FY23 sales growth of 9.3% year-on-year to $598.3 million, beating the consensus of $589.4 million.

The mass media company and newspaper publisher reported adjusted EPS of $0.37 (+54.2% Y/Y), beating the analyst consensus of $0.29.

The total number of subscribers grew by 8% to $10.08 million. Revenue from Subscriptions rose 9.4%, and Advertising grew 6%.

The adjusted operating margin expanded 240 bps to 15.0%, while the adjusted operating profit increased 30% to $89.8 million.

As of September 30, 2023, the company had cash and marketable securities of $587.8 million.

CEO Meredith Kopit Levien said, "Our multi-product bundle, which combines a world-class news destination with market-leading products in games, cooking, sports, and shopping advice, continues to perform well. We expect the bundle to enhance our resiliency and further us down the path to building a larger, more profitable company."

Q4 Outlook: New York Times forecasts total subscription revenue growth of 8% - 11%. The company expects Digital-Only subscription revenue growth of 13% - 16%.

The Q4 consensus revenue is $693.25 million, EPS of $0.61.

Price Action: NYT shares are trading higher by 7.22% at $44.62 on the last check Wednesday.