The New York Times reported $155 million profit but missed subscriber estimates, triggering a market sell-off amid rising costs.
The New York Times posted a 16% rise in adjusted operating profit to $155 million and an 11% revenue increase to $762 million. However, subscriber growth slowed to 280,000, below the 295,000 consensus estimate and down from 310,000 last quarter.
Digital-only average revenue per user rose 3% year over year to nearly $10, while digital ad revenue surged 21% to $114 million. Despite these gains, investors focused on the subscriber slowdown, which led the company to forecast 12-15% digital subscription revenue growth for Q3, potentially below analyst expectations.
The stock fell sharply as Wall Street’s growth-stock valuation of the company left little room for deceleration in subscriber additions.