New York Times shares sink after subscription report, misses revenue estimates – and tech staff strikes

Shares of the New York Times fell on Monday after the left-leaning Gray Lady reported third-quarter revenue and subscriptions that fell short of analysts’ expectations — hours after tech workers walked away ahead of Tuesday’s election.

The company added 260,000 digital-only subscribers in the quarter, down from 300,000 in the previous quarter as readers cut back on spending in an uncertain economy.

Analysts polled by Visible Alpha had expected an increase of 280,200 subscribers.

Shares of the New York Times fell 7.7%, closing at $52.45.

“US consumers’ interest in paying for news remains limited … (Moreover,) subscriber losses were narrow and may simply be a function of competition,” said eMarketer analyst Max Willens.

The results suggest that high inflation was affecting the paper’s strategy of driving growth by merging its core news offerings with lifestyle-focused products such as Wirecutter, sports website The Athletic and games including Wordle.

The Times expects subscription revenue to rise 7% to 9% in the fourth quarter, which was slightly below estimates of 8.2%, according to data compiled by LSEG.
In the third quarter, subscription revenue increased by 8.3%.

Total revenue of $640.2 million was in line with estimates of $640.8 million, as digital advertising thrived.

The mixed results were announced after the 600-member Technical Association went on strike early Monday morning.

AG Sulzberger, the paper’s publisher and chairman of its parent company, said he expects the work stoppage to last until Election Day — potentially threatening the site’s functionality on the most anticipated news day in four years.

“While I am disappointed by this decision, I want to stress to all of you that we have strong plans to ensure that our core journalism still reaches our readers,” Sulzberger wrote in a memo to staff Monday afternoon.

The job sharing follows more than two years of acrimonious negotiations that included some unusual demands such as job security for non-US citizens on work visas and mandatory warnings during company meetings that include discussions of news events.

The Times’ Tech Guild did not immediately respond to a request for comment.

Striking workers, who voted Sept. 10 to authorize a work stoppage, marched Monday at the company’s Midtown headquarters.

The union asked readers to “respect the digital picket line” and not play popular Times games like Wordle or use the Times cooking app, according to the Wall Street Journal.

“We’ve been sounding the alarm for weeks and clearing our schedules to complete this contract before the election week deadline,” said Susan DeCarava, president of the NewsGuild of New York. “We are disappointed that the Times is willing to gamble with its election coverage to avoid a fair and just deal.”

The union said it was fighting for the inclusion of a “just cause” provision to protect workers in the face of rapidly improving artificial intelligence technology, equal pay for women and minorities and full-time remote work options.

Times tech workers are some of the highest-paid employees at the company, earning an average annual salary of $190,000 — $40,000 more than reporters in the Times Guild, according to the New York Times.

In an email to workers Sunday, Times management said it had offered the union a 2.5% annual salary increase, a 5% minimum wage increase for promotions and a $1,000 ratification bonus.

The Times said it would maintain its current hybrid requirements for two days of in-person work a week until June 2025.

The company also allows employees to work fully remotely for three weeks per year.

The New York Times told its Tech Guild that it agrees with the importance of “just cause” provisions, which prevent employees from being fired without sufficient cause, but believed it was management’s decision to determine ” just cause” – not a third party. .

The Times also disputed the union’s claims about pay equity and race. Guild’s methodology compares average compensation across different identity groups, rather than comparing compensation between employees in similar roles, the company told Tech Guild.