One of the main drivers of CNBC’s growth was its digital subscription business, which added 1.2 million subscribers in the quarter, reaching a total of 8.7 million. This represents a 16% year-over-year growth and a 4% sequential growth.
CNBC’s digital subscription revenue grew by 23% year-over-year and accounted for 38% of its total revenue in the quarter. The company attributed this performance to its strong content offerings, such as CNBC Pro, CNBC Select, CNBC+ and CNBC TV.
CNBC’s digital subscription business also benefited from its partnership with Meta, the new name of Facebook, which allows CNBC subscribers to access its content on Meta’s platforms, such as Facebook News, Instagram and WhatsApp.
Advertising and licensing also contribute to revenue
CNBC’s advertising revenue increased by 9% year-over-year and by 6% sequentially, driven by higher demand for its premium inventory across its platforms, especially on its streaming service, CNBC TV.
CNBC’s licensing revenue, which includes fees from cable and satellite operators, as well as from international markets, grew by 7% year-over-year and by 3% sequentially, reflecting its global reach and brand recognition.
Operating expenses and earnings per share
CNBC’s operating expenses increased by 11% year-over-year and by 5% sequentially, mainly due to higher investments in content, technology and marketing. The company said it is focused on enhancing its user experience, expanding its distribution channels and growing its audience.
CNBC’s earnings per share (EPS) came in at $0.87, beating the consensus estimate of $0.82 and increasing by 13% year-over-year and by 8% sequentially. The company also raised its full-year guidance for revenue and EPS, citing its strong performance and outlook.
CNBC’s CEO comments on the results
Mark Hoffman, the chairman and CEO of CNBC, commented on the results in a press release, saying:
“We are very pleased with our third-quarter results, which demonstrate the strength and resilience of our business model. We delivered solid revenue growth across all our segments, driven by our digital subscription business, which continues to exceed our expectations. We also achieved record levels of profitability and cash flow, reflecting our disciplined cost management and operational efficiency.”
Hoffman also highlighted the company’s strategic initiatives and future plans, saying:
“We continue to invest in our core competencies of delivering high-quality, relevant and timely business news and analysis to our global audience. We are also exploring new opportunities to leverage our brand, content and technology to create new products and services that will enhance our value proposition and drive long-term growth. We are confident that we have the right strategy, team and resources to achieve our vision of becoming the ultimate destination for business and financial information and insights.”