New York Times Shares Rise as Publisher Moves Past ‘Trump Bump’
New York Times Subscription Gains Help Offset Declining Ads
(Bloomberg) -- The New York Times doesn’t want to hear about the “Trump bump” anymore.
The publisher said a broad array of news coverage helped to power a continued rise in digital subscriptions last quarter, with earnings and revenue beating analysts’ expectations. The results caused Times shares to jump as much as 12% and reach their highest point in 15 years.
Industry analysts have often linked the Times’ dramatic growth in digital subscribers to Donald Trump’s unique ability to create a never-ending news cycle that attracts more readers. That observation implies that the company’s subscriber growth could slow down if someone new takes over the White House next year.
On an earnings call Thursday, Times Chief Executive Officer Mark Thompson sought to put that notion to rest, calling it a “faulty analysis” and saying the Times doesn’t rely on a single story anymore to attract customers.
He cited the paper’s breadth of journalism, including recent coverage of the coronavirus, fires in Australia, the death of Kobe Bryant, and Prince Harry and his wife giving up their royal titles.
Thompson also said the Times has gotten better at acquiring and retaining subscribers using tactics like $1-a-week promotions and requiring readers to register and log in to read more articles, which makes it easier to convert them to paying customers.
On Thursday, the Times offered further evidence that interest in the news hasn’t abated, reporting fourth-quarter earnings that beat analysts’ expectations thanks to a 35% increase in digital news subscriptions. That helped offset a 11% drop in advertising.
The company forecast that total subscription revenue would rise by a mid-single-digit percentage in the first quarter, with sales from digital sign-ups rising in the high teens, and said it plans to raise prices.
The Times is also launching new podcasts and adding more subscribers to its non-news offerings, like its Crosswords and Cooking apps. The paper early last year set a goal of 10 million total subscribers by 2025, and it’s more than halfway there, tallying 5.3 million paying customers for its print and digital products.
“We have a number of opportunities to make our way into people’s lives and get them to form a habit,” Chief Operating Officer Meredith Kopit Levien said on the earnings call.
To contact the reporter on this story: Gerry Smith in New York at gsmith233@bloomberg.net
To contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, John J. Edwards III
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