The New York Times (NYSE:NYT) reported that its net digital-only subscriber base grew by 210,000 to 9.91 million in the first quarter, primarily driven by bundle and multiproduct subscriber additions.
The company said it had about 10.55 million subscribers overall, up roughly 8.4%. About 640,000 of those were print subscribers, down about 10%.
The company reported sales of $594 million, up 5.9% year over year, beating the consensus of $591.91 million.
Digital advertising revenues increased 2.9% to $63 million, primarily due to higher revenues from display advertising at The Athletic and Creative Services, partially offset by lower revenue from display advertising at The New York Times Group "NYTG" and podcast advertising.
Overall revenue from advertisements decreased 2.4% to $103.7 million.
The total digital-only average revenue per user (ARPU) increased 1.9% to $9.21, primarily due to subscribers graduating from promotional to higher prices and price increases on tenured non-bundled subscribers.
Adjusted operating profit reached $76.1 million, up 40.9%.
"2024 is off to a strong start, as our results reflect the power of our strategy to be the essential subscription for every curious person seeking to understand and engage with the world," Meredith Kopit Levien, CEO, said in a statement.
The Athletic, which The Times bought in 2022 for $550 million, had 4.99 million subscribers at the end of the first quarter, up 52.6%.
The Athletic revenues increased 33% to $37.2 million, largely due to increased subscriptions and a deal to license articles to Apple for its news product, NYT added.
The company reported adjusted EPS of $0.31, up 63% year over year, beating the consensus of $0.20.
Guidance: For the second quarter, the New York Times expects total subscription revenues to increase 6%-8%, with digital-only subscription revenues to increase 11%-14%.
The company forecasts second-quarter total advertising revenues to increase in the low single digits, with digital advertising revenues increasing in the high single digits.
Price Action: NYT shares are up 3.69% at $47.96 at last check Wednesday.
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