NYT Hits Goal of 10 Million Subscriptions, Closes on The Athletic

The New York Times company achieved its target of 10 million subscriptions ahead of schedule, the company said on Wednesday, adding that the 1.2 million it received was significantly helped by the acquisition of sports news website The Athletic.

The 550 million deal for The Athletic, announced last month, was completed on Tuesday, the company said.

In the final three months of 2021, prior to the athletic acquisition, The Times added 375,000 digital subscriptions, the company said in its quarterly earnings report. Those additions include 171,000 in its main news production, which means that most of The Times were for other digital offerings: games, including crosswords; Cooking, application of its recipes; Wirecutter, its product-suggestion site; And Audm, which makes audio versions of text-based journalism.

As of the last week of December, The Times had about 8.8 million subscriptions. About 5.9 million were for digital news, more than 2 million were for other digital products, and less than 800,000 shades were for print newspapers.

The Times also announced a new goal on Wednesday: it aims to have at least 15 million subscribers by the end of 2027.

A subscriber can account for more than one subscription. The subscriber metric, which will be included in the Times’ upcoming earnings report, reflects the company’s desire to market a bundle of multiple digital subscriptions as a one-stop shop not only for news but also for other diversions and needs.

Meredith Copit Levien, president and chief executive of the company, said in a statement that executives at The Times believe there are “at least 135 million” potential subscribers in the United States and around the world – adults willing to pay or pay for one or more. -Subscriptions for language news, sports coverage, puzzles, recipes or expert purchase advice. “

The Times set its previous target of 10 million subscriptions by 2025, three years ago when it had 4.3 million. As The Times’ core digital news app subscriptions grew, and as games and cooking each collected more than 1 million subscriptions, it became clear that the company would soon reach its goal.

Then, last month, The Times said it would buy Athletic, whose 400 reporters cover more than 200 sports teams in the United States, Britain and Europe, all in cash deals worth $ 550 million. The Times said on Wednesday that the deal was financed by “cash on hand”, which meant no money was borrowed.

In addition to closing on The Athletic, The Times said this week that it is acquiring a viral online puzzle world, which will be added to the Games app (and at least initially free).

For the fourth quarter of 2021, the company posted an adjusted operating profit of $ 109.3 million, up 12 percent from a year earlier and revenue of .7 594.2 million, an increase of 16.7 percent. Operating costs rose at a virtually similar rate to $ 500.1 million. Subscription revenue rose 11.1 percent to $ 351.2 million.

For the year, revenue rose 16.3 percent to $ 2.1 billion – 2021 being The Times’ first પછી 2 billion year since 2012. Operating costs rose 12.2 percent to 1.8 billion. While subscription revenue rose 13.9 percent to $ 1.4 billion, the year also represents a rebound for advertising, with revenue rising to $ 497.5 million, an increase of 26.8 percent compared to 2020, although in 2019 it was still 6.2 percent higher than before the epidemic. Percent less.

The company said subscription revenue is expected to grow 11 to 15 percent in the current quarter, including two months with Athletic as part of the company. The Times added that it expects digital subscription revenue to grow by 23 to 28 percent and advertising revenue from 17 to 21 percent. The company said costs would rise by 18 to 22 percent.

The company’s board of directors raised its dividend by 2 cents to 9 cents per share and authorized a રી 150 million stock repurchase, the company said. While the buyback will only affect Class A shares, which are available to the public, the dividend will apply to both those shares and Class B shares, which are primarily owned by the Ochs-Sulzberger family that controls The Times.

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