No magic force can stop print media’s decline, but The New York Times has found a way to stay afloat and thrive. The iconic newspaper added about 230,000 paid digital subscribers between April and June despite losing 20,000 print subscribers, The New York Times Company said yesterday (Aug. 6) in its quarterly earnings report. Strong digital growth helped push total revenue to $686 million for the quarter, up 9.7 percent from the same period a year ago, with net income rising 34 percent year-over-year to $107 million. Both figures beat analyst expectations, sending the company’s shares up more than 13 percent following the report.
As of the end of June, The Times had 11.9 million subscribers across its print and digital products—including Audio, Games, Cooking, Wirecutter and the recently acquired sports publication The Athletic. Print subscriptions declined by 50,000 over the past year, falling to 580,000. Despite the drop, The Times remains the second-largest print newspaper in the U.S. by circulation, behind The Wall Street Journal.
Digital subscriptions alone generated $350 million in revenue for the quarter, while print subscriptions brought in $131 million.
Advertising remains an important revenue stream. Between April and June, digital advertising revenue reached $94 million, up 19 percent from a year earlier. According to the earnings report, this category includes “display, audio, email and video” ads as well as creative services fees.
The Times also earned revenue through referrals and affiliate links, mainly via Wirecutter, its product review and how-to site. Acquired in 2016, Wirecutter maintains editorial independence through rigorous testing and transparent standards.
In 2022, The Times further expanded its portfolio with the $550 million acquisition of The Athletic. Though it had operated at a loss the previous year, the sports-focused outlet brought in $54 million in revenue and $5.8 million in operating profit during the April-June quarter, signaling it was a valuable addition to the company.
On the cost side, The Times incurred a $3.5 million expense from its ongoing legal battle with OpenAI and Microsoft, though it was a small portion of its $579 million in total operating costs. In late 2023, the newspaper sued both companies for copyright infringement, alleging they used millions of its articles without permission to train their A.I. chatbots.
Looking ahead, The Times expects total subscription revenue for the current quarter to grow 8 to 10 percent year-over-year, and advertising revenue to rise by a single-digit percentage. Operating costs are expected to increase 5 to 6 percent, partly due to legal expenses from the lawsuit.