New York Times beats forecast as digital business overtakes print for the first time

by   |  VIEW 1488

New York Times beats forecast as digital business overtakes print for the first time

New York Times Co. had beaten Wall St. forecasts for its second-quarterly earnings, as the New York City-based mass media company’s digital wing that comprises of a swathe of contents ranging from news to podcasts to crosswords, had surpassed its legacy print business for the first time on record over Q2, 2020.

In point of fact, the New York Times Co., which has long been competing for advertising revenues against much-larger industry behemoths likes of Facebook Inc. and Alphabet Inc.-owned Google LLC., had launched its digital unit back in the 2011s in a transforming bid to lean further towards a subscriber-based model, while the New York City-based mass media company’s effort to shift its businesses online appeared to have paid off over the recent past when a number of print media giants appeared to have ceased to exist.

New York Times Co. sees Q3 digital subscription revenues rising 30 per cent

On top of that, as the New York Times Co.’s business framework to slash its spending and reliance on advertising had paid off, the company had also forecasted a 30 per cent increase in digital subscription revenues over the current-quarter of the year.

Besides, according to New York Times Co.’s quarterly earnings’ report for Q2, 2020, the mass media company’s quarterly revenue rose by 8.4 per cent to $293.19 million, however, an addition of over 650,000 paid digital subscriptions over the quarter had assisted the company to stomach a 43.9 per cent drop in advertising revenues.

Aside from that, as the company’s net revenue had clocked a less bleaker-than-forecasted plunge of 7.5 per cent to $403.75 million against an analysts’ estimate of $387.18 million, New York Times Co.’s departing Chief Executive Mark Thompson said in a post earnings’ call with the reporters, “We posted our best-ever results for new digital subscriptions, and for the first time in our history total digital revenue exceeded print revenue.

”. However, the mass media company had also forecasted a drop between 35% to 40% in advertisement revenues over the current quarter.