The News-Game Bundle: Why the New York Times' Q1 2025 Performance Is a Win for Wall Street

Whilst most of the media world is living through a 'media winter'—complete with revenue disruptions, layoffs, and office closures, — popular newspaper The New York Times has just dropped Q1 results that makes one wonder if they've been reading the same script.

The venerable publication, which some still affectionately call the 'Grey Lady', has managed to add a whopping 250,000 digital subscribers in the first three months of 2025. That's brought their total revenue to £478.05 million ($636 million), up 7% from last year.

Digital Subscription Growth

The publication's parent company–The New York Times Company–reported strong first-quarter 2025 results, driven by growth in digital subscriptions and advertising revenue. The company added approximately 250,000 digital-only subscribers, bringing the total to over 11.6 million across all digital and print platforms, including news, games, cooking, The Athletic, and Wirecutter. Digital-only subscriptions reached more than 11 million, with nearly six million on bundled or multiproduct plans.

Total revenue rose 7% to £478.05 million ($636 million), while net profit grew to £37.28 million ($49.6 million), or 30 cents per share. Analysts had forecast earnings of 34 cents per share on £477.30 million ($635 million) in revenue. Moreover, digital subscription revenue increased by over 14% to £251.80 million ($335 million), and overall subscription revenue climbed 8.2% to £348.99 million ($464.3 million).

A Boost in Digital Advertising

Digital advertising made up 65.6% of total ad revenue, helping boost total advertising revenue by more than 4% to £81.18 million ($108 million). The revenue increased by 12.4% year-over-year in the first quarter of 2025, reaching £53.29 million ($70.9 million) compared to £47.35 million (63.0 million) in the same period last year. This growth was primarily driven by strong demand from advertisers and the addition of new advertising supplies, indicating a positive trend in their digital ad business.

Additionally, the segment information shows that digital advertising revenues contributed to overall advertising revenues, which grew slightly by 4.2%. The growth in digital ad revenues reflects the company's success in attracting more advertising dollars in its digital channels, benefiting from areas of strong marketer demand.

The Impact of Its Gaming Division

It is worth noting that The New York Times' gaming division also significantly contributed to its revenue and subscriber growth. Games like Wordle, Spelling Bee, and Connections have become key entry points for new subscribers, with over 10 million weekly active users engaging with these offerings as of 2023. This surge in engagement has bolstered the company's digital-only subscriber base, which grew by 250,000 in Q1, reaching 11.66 million.

The Times' strategy of bundling its games with other digital products has proven effective in attracting and retaining subscribers. Notably, nearly six million subscribers are now on bundled or multiproduct plans. This approach has increased average revenue per user and enhanced subscriber engagement and loyalty.

By leveraging its gaming division, The New York Times has diversified its offerings and strengthened its position in the digital media landscape. The success of its games underscores their role as a vital component of the company's growth strategy.

Challenging Ahead for Media

Media companies are navigating a challenging landscape in 2025, striving to maintain profitability amid declining traditional advertising revenues and the ongoing struggle to retain audiences.

Paramount Global, for instance, experienced a 6% year-over-year revenue decline in Q1 2025, primarily due to reduced advertising income and the absence of significant events like the Super Bowl. Despite this, its streaming platform, Paramount+, added 1.5 million subscribers, reaching 79 million globally, indicating a strategic pivot towards direct-to-consumer models.

In contrast, digital advertising continues to show robust growth. According to the Interactive Advertising Bureau, digital ad revenue surged 15% year-over-year in 2024, highlighting a shift in advertiser preferences towards online platforms.

Looking Forward

The Times' performance offers valuable lessons for other media companies struggling with digital transformation. The integration of games, lifestyle content, and news under one subscription umbrella demonstrates how traditional publishers can expand beyond their core offerings whilst maintaining editorial integrity.

The success also highlights the importance of direct-to-consumer relationships in an era of platform dependency. By building a robust subscription base, The Times has reduced its reliance on social media algorithms and advertising-dependent models that can be disrupted by external factors.

As media companies continue navigating this transformative period, The New York Times' approach suggests that focused execution, product diversification, and genuine audience engagement remain the cornerstones of sustainable growth in the digital age.