The New York Times Company (NYT) Q2 2024 earnings summary

Executive summary

• Added 300,000 net digital-only subscribers in Q2 2024, reaching 10.84 million total subscribers and 10.21 million digital-only, with bundle and multiproduct subscribers now 45% of the base.

• Digital-only ARPU rose 2.1% year-over-year to $9.34, reflecting price increases and subscriber transitions from promotions.

• Total revenues grew 5.8% year-over-year to $625.1 million, driven by digital subscription and advertising growth.

• Adjusted operating profit increased 13.6% year-over-year to $104.7 million, with margin expanding to 16.7%; operating profit rose 42.4% to $79.4 million.

• Adjusted diluted EPS was $0.45, up from $0.38; diluted EPS was $0.40, up from $0.28 year-over-year.

Financial highlights

• Digital-only subscription revenues increased 12.9% year-over-year to $305 million; total subscription revenues up 7.3% to $439 million.

• Digital advertising revenues grew 7.8% year-over-year to $79.6 million, now 66.8% of total advertising revenue; print advertising declined 10%, resulting in total advertising revenue growth of 1.2%.

• Other revenues increased 4.9% year-over-year, mainly from Wirecutter affiliate and licensing.

• Adjusted operating costs increased 4.4% year-over-year to $520.4 million; total operating costs up 2.0% to $545.7 million.

• Net income for the quarter was $65.5 million, up 40.7% year-over-year.

Outlook and guidance

• Q3 2024 guidance: digital-only subscription revenues expected to increase 12–15% year-over-year; total subscription revenues up 7–9%.

• Digital advertising revenues projected to grow high single digits; total advertising revenues flat to low single digits; other revenue expected to rise 9–11%.

• Adjusted operating costs to increase 5–6% in Q3, reflecting increased marketing investment.

• 2024 full-year estimates: depreciation and amortization ~$80 million, interest income and other ~$35 million, capital expenditures ~$40 million.

• Plans to return at least 50% of free cash flow to shareholders over the mid-term.