The New York Times Company announced third-quarter 2020 diluted earnings per share from continuing operations of $.20 compared with $.10 in the same period of 2019. Adjusted diluted earnings per share from continuing operations (defined below) was $.22 in the third quarter of 2020 compared with $.12 in the third quarter of 2019. Operating profit increased to $39.6 million in the third quarter of 2020 from $25.1 million in the same period of 2019 and adjusted operating profit (defined below) increased to $56.5 million from $44.1 million in the prior year, as higher digital-only subscription revenues and lower costs more than offset lower advertising revenues. Subscription revenues in the third quarter of 2020 rose due to growth in the number of subscriptions to the Company’s digital-only products, which include our news product, as well as our Cooking, Games (previously Crossword) and audio products. Revenue from digital-only products increased 34.0 percent, to $155.3 million. Print subscription revenues decreased 3.8 percent to $145.7 million largely due to lower retail newsstand revenue, while revenue from our domestic home delivery subscription products grew 2.5 percent.
Did you know MIDLAND has been a proud supporter of the American Catalog Mailers Association (ACMA) for well over a decade, as both a member and an active sponsor? With how much of our customers’ catalog budget goes towards paper and postage, we firmly believe it’s the right thing to do. We wanted to provide an update on what the ACMA is currently focusing on and a call to action of how you can choose to help.
For those not already familiar with the ACMA, they are a non-profit organization founded in 2007. The ACMA is the only industry association advocating specifically for catalog, online, direct mail, and other remote-selling merchants, as well as their suppliers. In recent years, the ACMA has had successes for the entire industry in postal enhancements, consumer privacy, and remote sales tax.
Let’s look at some of the numbers. Our industry has seen five postage rate increases in the past 2.5 years. This is an average compounded increase of 39.6% for catalogs. In addition, all indications are that the biannual rate increase cadence will continue until at least 2026. It should be noted that a portion of these increases comes from an extra 2% surcharge that has been figured into rate increases since 2018. Catalogs, classified by the USPS as an “underwater product”, are the only major mailing category that receives this charge.
The ACMA is laser-focused on the future and longevity of catalogs in the mail. They do this by working directly with USPS leadership and by drumming up support for postal reform with members of Congress. Two of their current goals are: * An immediate moratorium on the biannual 2% surcharge. * Additional meaningful USPS incentives, such as for year over year volume growth and increased mailing frequencies, that can lower a mailer’s average cost per piece while reaching more customers and prospects.
We encourage you to read more about everything the ACMA has been up to at their website, https://catalogmailers.org/. There, you can also learn how to become a member or make a donation. It’s vital that all of us in and adjacent to the mailing industry work together for the long-term health of catalogs and all direct mail.
How else can you get involved? In early October, the ACMA will hold a Washington DC fly-in for both members and non-members, to engage in meetings with Congress on Capitol Hill. Please reach out to the ACMA or your MIDLAND sales representative to learn more about this valuable opportunity.