The New York Times Company (NYT) Q4 2021 earnings summary

Executive summary

• 2021 was the second-best year for subscription additions: 1.3 million net adds, ending with 7.6 million paid subscribers and 8.8 million subscriptions.

• Revenue reached $2.07 billion, with reported operating profit of $268.0 million and adjusted operating profit of $335.4 million.

• The February 2022 acquisition of The Athletic lifted total subscriptions above 10 million, ahead of the prior 2025 target; the new goal is at least 15 million subscribers by year-end 2027.

Financial highlights

• FY 2021 revenue rose 16.3% YoY to $2.075 billion; subscription revenue rose 13.9% to $1.362 billion and advertising revenue rose 26.8% to $497.5 million.

• Operating profit increased 52.1% to $268.0 million; net income was $220.0 million versus $100.8 million in 2020.

• Diluted EPS was $1.31 versus $0.60; adjusted diluted EPS, excluding severance, non-operating retirement costs and special items, was $1.28 versus $0.97.

• Adjusted operating profit increased 33.8% to $335.4 million; adjusted operating costs rose 13.5% to $1.739 billion.

• Operating cash flow was $269.1 million; cash, cash equivalents and marketable securities totaled $1.074 billion at year-end.

Outlook and guidance

• Target at least 15 million total subscribers by year-end 2027, compared with approximately 7.6 million at the end of 2021.

• 2022 priorities include investment in journalism, product development, Games and Cooking, Wirecutter subscriptions, audio, a children’s app concept, and The Athletic’s audience.

• 2022 capital expenditures are expected to be approximately $50 million, funded from cash on hand, for headquarters, technology initiatives and the College Point facility.

• 2022 qualified pension plan contributions are expected to be approximately $10 million to meet minimum funding requirements.