The New York Times said in a statement on Wednesday that President Donald Trump has millions of subscribers this year and is expected to increase significantly this year, as he has not yet reached the epidemic. It melted the world economy. The company estimates that by the end of 2021, it will have 8.5 million paid print and digital subscriptions.
“The success of our strategy is a testament to the success of the company’s digital subscriptions,” said Merit Copit Levine, CEO of the company. She puts the market capitalization of 100 million readers, and there is a chance that she will be able to invest in “everyday experiences”.
The Times reported modest growth in the April-June quarter — typically the weakest — adding 142,000 new digital subscribers, 77,000 for news applications, and 65,000 for cookies and games. By the end of June, The Times had a total of 7.9 million subscribers, paying 7.1 million for its digital products. Of the digital subscribers, 5.3 million are subscribed to the news app.
The company reported $ 93 million in operating profit with $ 499 million. Investors were looking for $ 738 million to make a net profit of $ 488 million. Before the stock ended 7.65 percent, the stock jumped to 12 percent.
Times traded up 24 percent a year earlier, with markets returning to pre-epidemic spending levels with a 16 percent subscription dollar and a 66 percent increase in advertising.
Wall Street investors and news executives across the country view The Times as a bell and a lone wolf: The company’s digital performance shows what it can be for a news media company in the age of Facebook and Google, but not everyone who publishes (digital) or print can look like a success . Online revenue from The Times – particularly advertising and subscriptions – jumped 41 percent to $ 261 million.
For the current quarter, which ends in September, the company expects digital subscription revenue to increase from 25 to 30 percent a year ago and online advertising sales to 40 to 45 percent. Total subscription revenue should increase by 13 to 15 percent and 30 to 35 percent.
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This fall, according to The Times, provides a subscription product for the popular Wirecutter site, which allows readers to earn money on their own through product commission deals with businesses such as Amazon and Walmart. The site is currently free, but the company plans to test readers to find some articles before they are asked to pay.
Digital subscription revenue is constantly growing, but in the second quarter the average revenue per account was $ 8.89 per month. Readers who pay a cheap promotion rate have graduated to full-time subscriptions, but since 2019 the company has been earning an average of $ 9.74 per month since last year.
The company is focused on increasing subscriptions and has been trying to convert 100 million subscribers into paid readers. .
That’s why the company’s stock is trading at such a high price as Silicon Valley Behemoth.
Investors are paying $ 41 for the expected profit of owning Times shares. That is more than what people pay to own Facebook, $ 21, and Google $ 25. Rupert Murdock News Corporation, published by The Wall Street Journal, trades at $ 40 for $ 40. Shares in Netflix (another subscription service similar to The Times) cost more, $ 1 for every future revenue of $ 62.
However, when the new administration took over the White House in January, Times’ stock fell by about 17 percent this year. The S&P 500 index is up about 18 percent by comparison.
The Times continues to invest in digital marketing, which expects expenditures to increase by 18 to 20 percent this quarter, with total capital expenditures reaching $ 50 million a year. Hamer next to the company’s cash – $ 947 million at the end of June.
Holding that much money is often seen as an ineffective use of capital that can be put to good use in investments or purchases – in other words, use it or lose it. The company pays a quarterly profit of $ 40 million a year, but is relatively conservative in terms of mergers and acquisitions. Last year, he spent $ 25 million on Serial Productions, the company behind the “series” podcast.
“In general, our choice is to use our strong balance sheet to invest in our strategy and increase the value of our products,” Levin said after the report.