New York Times warns of easing growth after news storm boosts results

(Reuters) - The New York Times warned on Thursday its robust digital growth may not be sustainable going ahead, easing expectations after reporting a strong quarter that benefited from a news coverage storm around the COVID-19 pandemic and the U.S. election. The company's shares fell 5% on the sobering outlook, even as it achieved the key milestone of generating more revenue from digital sign-ups than print subscriptions.

Reuters November 06, 2020 00:06:28 IST
New York Times warns of easing growth after news storm boosts results

New York Times warns of easing growth after news storm boosts results

(Reuters) - The New York Times warned on Thursday its robust digital growth may not be sustainable going ahead, easing expectations after reporting a strong quarter that benefited from a news coverage storm around the COVID-19 pandemic and the U.S. election.

The company's shares fell 5% on the sobering outlook, even as it achieved the key milestone of generating more revenue from digital sign-ups than print subscriptions.

"2020 is an outlier year. So I don't think you should expect us to get to the same place we are getting in 2020 given the extraordinary nature of the news cycle," Chief Executive Officer Meredith Kopit Levien said on an earnings call with analysts.

Heightened interest in the U.S. presidential election brought 120 million readers to its digital platform on Wednesday alone and over 75 million the day before, Kopit Levien added.

New York Times said it added 393,000 paid digital-only subscribers during the quarter. Of this, 275,000 subscribed for its digital news product, while the remaining were for its popular cooking, games and audio products.

The paper has focused for years on online subscriptions to offset an industry-wide decline in print readership and fickle advertising revenues.

The media company warned of a 30% decline in advertising revenue in the fourth quarter, but said it expects digital-only subscription revenue to rise about 35%.

Advertising sales have been unpredictable as companies slash budgets to cope with a sharp drop in business due to cronavirus-led lockdowns.

New York Times competes with tech giants like Facebook Inc and Alphabet Inc's Google as well as other national news publishers to attract advertisers.

Total revenue slipped 0.4% to $426.9 million, but came in above analysts' estimates of $411.8 million, according to Refinitiv data.

Excluding items, the company earned 22 cents per share, beating analysts' average estimate of 11 cents.

(Reporting by Ayanti Bera and Tiyashi Datta in Bengaluru; Editing by Subhranshu Sahu and Saumyadeb Chakrabarty)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

Find latest and upcoming tech gadgets online on Tech2 Gadgets. Get technology news, gadgets reviews & ratings. Popular gadgets including laptop, tablet and mobile specifications, features, prices, comparison.

also read

IAEA and U.S. pressure Iran over uranium particles at 'atomic warehouse'
World

IAEA and U.S. pressure Iran over uranium particles at 'atomic warehouse'

VIENNA (Reuters) - The U.N. nuclear watchdog and the United States pressured Iran on Wednesday to finally explain the origin of uranium particles found almost two years ago at an old but undeclared site that Israel has called a "secret atomic warehouse". Israeli Prime Minister Benjamin Netanyahu drew attention to the Turqazabad site in Tehran in a speech to the United Nations in September 2018, urging the International Atomic Energy Agency to visit it

Sri Lanka's Gotabaya says has reassembled nation's intelligence network
World

Sri Lanka's Gotabaya says has reassembled nation's intelligence network

NEW DELHI (Reuters) - Sri Lankan President Gotabaya Rajapaksa said on Wednesday he had delivered on a key election promise to rebuild the island nation's intelligence network in the year since assuming office.

Pole and Chinese citizen indicted in Warsaw for spying
World

Pole and Chinese citizen indicted in Warsaw for spying

WARSAW (Reuters) - Polish authorities said on Wednesday a former secret service agent and a Chinese citizen who worked for a telecommunications company have been charged with spying for China. Reuters previously reported on the allegations against an employee of Huawei and a former Polish domestic intelligence operative who were being investigated by the Warsaw government for suspected espionage