NYSE$NYT

The New York Times Co · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

NYT's Q2 2020 earnings were impacted by the COVID-19 pandemic, with total revenue decreasing due to declines in advertising revenue, though digital subscriptions saw significant growth.

The New York Times Company reported a 7.5% decrease in total revenue for Q2 2020, amounting to $403.8 million, compared to $436.3 million in Q2 2019. Despite a decrease in advertising revenue, the company added 669,000 net new digital subscriptions.

  • Total revenues decreased by 7.5% due to the COVID-19 pandemic.
  • Digital-only subscription revenue increased by 29.6%.
  • The company added 669,000 net new digital subscriptions.
  • Total digital revenue exceeded print revenue for the first time.

Headline financials

Total Revenue

$404M

Previous: $436M-7.5%
EPS (adj)

$0.18

Previous: $0.17+5.9%
Capital Expenditures

-$21.5M

Previous: -$23.1M+6.7%
Free Cash Flow

$2.15M

Previous: $2.11M+2.2%
Net Income

$23.7M

Previous: $25.2M-6.0%
Operating Income

$28.8M

Previous: $37.9M-24.1%
Gross Profit

$404M

Previous: $263M+53.4%
Cash & Equivalents

$757M

Previous: $256M+195.8%
Total Assets

$2.06B

Previous: $2.21B-6.7%
Stock-Based Comp

$5.03M

Previous: $3M+67.6%

Revenue & EPS history

NYT · Revenue · Quarterly

$404M

Q2 2020-7.5%vs Q2 2019
Beat estimate in 16 of 16 quarters(100%)
ActualEstimate

Revenue by segment

NYT · $214M total across 3 segments · Q2 2020

  • Digital-only subscription
    $146M+29.6%
  • Digital advertising
    $39.5M-31.9%
  • Print advertising
    $28.2M-55.0%

Forward guidance

The Company expects subscription revenues to increase, but advertising and other revenues to decrease in the third quarter of 2020. Operating costs are expected to be flat or to decrease in the low-single digits.

Tailwinds

  • Total subscription revenues are expected to increase approximately 10 percent.
  • Digital-only subscription revenue is expected to increase approximately 30 percent.
  • Operating costs are expected to be flat or decrease slightly.
  • Company is continuing to invest in digital subscription growth.
  • Deferring non-essential spending.

Headwinds

  • Total advertising revenues are expected to decline approximately 35 percent to 40 percent.
  • Digital advertising revenue is expected to decrease approximately 20 percent.
  • Other revenues are expected to decrease approximately 10 percent.
  • The COVID-19 pandemic could impact the outlook.
  • Uncertainties in the business and competitive environment.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.1%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+3.8%

Avg return

30 days after

43%

29 / 68 earnings

Positive

+17.1%

Q1 2017

Best reaction

-23.1%

Q3 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+6.8%+0.0%-0.5%
Q4 2025-6.3%-4.9%+11.4%
Q3 2025-0.3%+8.4%+12.1%
Q1 2025-0.1%+3.0%+6.0%
Q4 2024-11.9%-11.9%-11.9%
Q3 2024-6.3%-1.0%-3.9%
Q2 2024+3.0%+3.3%+1.6%
Q1 2024+3.8%+3.9%+8.7%
Q4 2023-9.9%-8.7%-10.8%
Q3 2023+3.6%+4.4%+12.2%
Q2 2023+7.5%+8.6%+9.3%
Q1 2023-7.7%-6.5%-6.0%
Q4 2022+9.3%+7.4%-0.6%
Q3 2022+12.5%+16.2%+21.5%
Q2 2022-0.9%-0.5%-1.6%
Q1 2022-7.8%-13.8%-11.8%
Q4 2021+0.8%-1.4%+11.5%
Q3 2021-8.2%-11.4%-14.9%
Q2 2021+8.6%+9.8%+19.7%
Q1 2021-1.2%-0.2%-6.8%
Q4 2020-0.6%-2.7%-0.8%
Q3 2020-4.6%-7.6%+14.0%
Q2 2020-0.7%-4.9%-7.4%
Q1 2020+5.2%+8.2%+24.3%
Q4 2019+9.4%+13.0%+9.6%
Q3 2019-5.4%-2.3%+1.3%
Q2 2019-14.4%-20.2%-14.7%
Q1 2019+5.9%-0.5%-1.1%
Q4 2018+13.7%+16.1%+23.9%
Q3 2018+5.4%+2.0%+1.6%
Q2 2018-6.0%-6.4%-6.0%
Q1 2018-0.9%-0.9%+0.0%
Q4 2017+8.8%+9.0%+11.7%
Q3 2017-6.5%-9.4%-2.4%
Q2 2017+5.2%+4.1%-0.5%
Q1 2017+17.1%+18.9%+23.1%
Q4 2016+5.9%+8.1%+7.7%
Q3 2016-0.9%+1.8%+17.4%
Q2 2016+1.5%-0.1%+2.0%
Q1 2016-4.3%
Q4 2015-2.3%
Q3 2015+1.8%
Q2 2015+0.0%
Q1 2015+6.2%
Q4 2014+9.2%
Q3 2014-4.2%
Q2 2014-9.3%
Q1 2014-1.6%
Q4 2013+4.2%
Q3 2013-0.3%
Q2 2013-2.1%
Q1 2013-0.9%
Q4 2012+5.2%
Q3 2012-23.1%
Q2 2012+9.3%
Q1 2012-2.0%
Q2 2011+0.8%
Q4 2011+0.8%
Q3 2011-0.8%
Q1 2011+0.0%
Q1 2010+0.0%
Q2 2010-7.3%
Q4 2008-7.3%
Q4 2010-7.3%
Q3 2010+0.5%
Q3 2009+0.5%
Q2 2009-3.4%
Q4 2009-3.4%

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