The New York Times Co. (NYSE: NYT) reported Q4 EPS of $0.32, $0.04 better than the analyst estimate of $0.28. Revenue for the quarter came in at $502.7 million versus the consensus estimate of $479.63 million.

Mark Thompson, president and chief executive officer, The New York Times Company, said, “A strong quarter capped a strong year for The New York Times. We added 265,000 net new digital subscriptions in Q4, the biggest gain since the months immediately following the 2016 election. Digital subscription growth accelerated in the second half of 2018 and we ended the year with 3.4 million digital subscriptions and 4.3 million total subscriptions. We achieved digital advertising revenue growth of 23 percent year-over-year in Q4, or 32 percent on a like-for-like basis, our best result for many years.

“We ended 2018 with $709 million in total digital revenue. This means that after just three years, we are already three quarters of the way to achieving our five-year goal of doubling digital revenue to $800 million by 2020. As a result we are setting ourselves a new goal – to grow our subscription business to more than 10 million subscriptions by 2025.

“Our appeal to subscribers – and to the world’s leading advertisers – depends more than anything on the quality of our journalism. That is why we have increased, rather than cut back, our investment in our newsroom and opinion departments. We want to accelerate our digital growth further, so in 2019, we will direct fresh investment into journalism, product and marketing.

“We believe that a conservative approach to our balance sheet makes sense as we navigate our digital transition. Nonetheless, in the light of the progress we have made, our Board of Directors has approved a dividend increase of $.01 per share to $.05 per share. The Board will of course continue to keep the balance sheet and the best use of capital under close review.”

GUIDANCE:

Total subscription revenues in the first quarter of 2019 are expected to increase in the low to mid-single digits compared with the first quarter of 2018, with digital-only subscription revenue expected to increase in the mid-teens.

Total advertising revenues in the first quarter of 2019 are expected to decrease in the low to mid-single digits compared with the first quarter of 2018, with digital advertising revenue expected to increase in the mid-teens.

Other revenues in the first quarter of 2019 are expected to increase approximately 50 percent compared with the first quarter of 2018.

Operating costs and adjusted operating costs are expected to increase approximately 10 percent in the first quarter of 2019 compared with the first quarter of 2018 as a result of continued investment into the drivers of digital subscription growth: marketing, product and journalism; as well as in commercial printing operations.

The Company expects the following on a pre-tax basis in 2019:

• Depreciation and amortization: $60 million to $65 million,
• Interest expense and other, net: $10 million to $12 million, and
• Capital expenditures: $45 million to $55 million

For earnings history and earnings-related data on The New York Times Co. (NYT) click here.