The New York Times fell the most since April after warning that it doesn't expect an encore to its dramatic 2020 subscriber gains.
The Times added 393,000 online subscribers in the third quarter, thanks partly to a heavy news cycle, the company said in a statement Thursday. And digital-only subscription revenue exceeded print subscription revenue for the first time.
But on an earnings call, Chief Executive Officer Meredith Kopit Levien warned that the Times was unlikely to continue adding subscribers at the same pace next year. She called 2020 "an unprecedented year" for digital subscription growth, adding, "We don't expect to repeat its results."
Also, the Times warned that its advertising business, which contributes about one-third of its overall revenue, will continue to struggle as marketers pull back during the pandemic and readers move online. Total advertising revenue is expected to decline 30% next quarter, the same percentage it fell last quarter.
Though the online business is now the Times' main focus, internet ads typically don't command the kind of prices that print ones do.
Times shares fell 5.3% to $39.24 in New York trading. They had gained 29% this year through Wednesday, compared with a 6.6% rise in the S&P 500.
The Times has set a goal of 10 million total subscribers by 2025. It crossed 7 million in October.