Last week the New York Times reported its fourth quarter earnings for 2015. Top highlights for the New York Times (NYSE: NYT) include an operating profit of $87.7 million, compared to $62.4 million year over year, and the addition of 53,000 new paid digital-only subscribers, a 20% increase year over year.

“We ended the year with a solid quarter, with strong growth in adjusted operating profit and digital advertising and consumer revenue, and the addition of 53,000 net new paid digital-only subscribers, the largest number of new subscribers in a quarter in three years,” said Mark Thompson, president and CEO of The New York Times Company in a statement. “We also succeeded in significantly reducing our costs.”

“Overall, 2015 was a year of progress across the business,” he added. “From the launch of virtual reality, continued growth in T Brand Studio, enhancement of mobile ad products, reimagined print sections and the delivery of consistently excellent journalism, we laid the groundwork for continued digital growth.”

Other 2015 results include:

• Year-end operating profit of $136.6 million, compared to $91.9 million for 2014
• Total revenues for Q4 were flat at $444.7 million, year over year.
• Circulation revenue increased 1.3%.
• Advertising revenue declined 1.3%.
  • Print ad revenue dropped 6.6%.
  • Digital advertising revenue increased 10.6%.
• Operating costs decreased 7.7% in Q4 to $352.7 million, compared to $382.3 million year over year. Costs decreased due to:
  • Efficiencies in print production and distribution
  • Declines in severance, depreciation, amortization and raw materials costs
  • Decrease in non-operating retirement costs (now $7.5 million from $11.2 million in Q4)

The New York Times attributes the rise in circulation revenue to the company’s digital subscription initiatives and an increase in home-delivery prices which offset the decline in print copies sold. Circulation revenue from digital-only subscriptions increased 13.3% to $50.4 million for the fourth quarter and 13.8% to $192.7 million for the full year. Total paid subscribers for digital-only subscriptions now total 1,094,000.

What’s next? In the first quarter of 2016, the New York Times Company anticipates an increase in circulation revenue similar to that of the fourth quarter. It anticipates total advertising revenue will decrease between 2% and 4%, compared to the first quarter of 2015.

The company will continue its strategic approach to “build out new high value propositions for marketers in branded content, mobile, video and virtual reality,” and it hopes T Brand Studio, a two-year-old initiative, will continue to be successful. The company does not expect significant digital advertising growth from these initiatives yet, but it believes it is moving in the right direction for a strong 2016.

In the fourth quarter earnings call, Thompson said the company continues to improve in the retention and growth of international subscribers, and it has been successful in developing target pricing for specific market segments like college students.

“We believe our digital pay model has great potential and that is being borne out in the acceleration we are seeing in our year-over-year subscriber growth numbers, as well as the related revenue growth,” Thompson said.

Insider Take:

In addition to the Q4 and year-end financials, the New York Times experienced growth in unique visitors to its website, competing indirectly with the Washington Post. It tried many new initiatives this year, including virtual reality, partnerships with companies like Evernote, and promotions like offering same-day digital access to single-copy newspaper buyers.

It also has a solid strategic plan in place to measure and monitor these initiatives, and it is relatively nimble for such a large organization. The New York Times is willing to take risks, but it is also willing to abandon things that aren’t working. For example, last March, the New York Times abandoned subscriptions for NYT Now, making the app free.

Bottom line: The New York Times faces the same challenges that publishers face, but it seems to be tackling them better than most. The newspaper is not only a well-respected stalwart of exceptional journalism, but it is showing other subscription companies how to do adapt to change, take risks, try new things and focus on things they can control. Well done, Gray Lady, well done.