On August 7, 2024, New York Times Co (NYT, Financial) released its 8-K filing reporting its second-quarter 2024 results. The company, known for its flagship newspaper, The New York Times, and its digital properties, operates through two segments: New York Times Group (NYTG) and The Athletic. The majority of its revenue is derived from subscriptions.
Performance Overview
New York Times Co (NYT, Financial) reported a diluted earnings per share (EPS) of $0.40 for Q2 2024, surpassing the analyst estimate of $0.39. However, the company's revenue of $625.1 million fell slightly short of the estimated $629.97 million. The company added approximately 300,000 net digital-only subscribers, bringing the total to 10.21 million digital-only subscribers.
Key Financial Achievements
New York Times Co (NYT, Financial) saw a 42.4% year-over-year increase in operating profit, reaching $79.4 million. Adjusted operating profit rose 13.6% to $104.7 million. The operating profit margin for the quarter was 12.7%, while the adjusted operating profit margin was 16.7%, a year-over-year increase of approximately 110 basis points.
Meredith Kopit Levien, president and chief executive officer, stated, "It was a strong second quarter for The Times – one in which we made further progress on the path to grow our subscriber base and become the essential subscription for every curious person seeking to understand and engage with the world."
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 | % Change |
|---|---|---|---|
| Total Revenue | $625.1 million | $590.9 million | 5.8% |
| Operating Profit | $79.4 million | $55.8 million | 42.4% |
| Diluted EPS | $0.40 | $0.28 | 42.9% |
Revenue Breakdown
Subscription revenues increased by 7.3% to $439.3 million, driven by a 12.9% rise in digital-only subscription revenues. Digital advertising revenues grew by 7.8% to $79.6 million, while print advertising revenues decreased by 10.0% to $39.6 million. Other revenues saw a 4.9% increase to $66.6 million, primarily due to higher Wirecutter affiliate referral and licensing revenues.
Operating Costs and Challenges
Total operating costs increased by 2.0% to $545.7 million, with adjusted operating costs rising by 4.4% to $520.4 million. The increase in costs was largely due to higher journalism, product development, and general and administrative expenses. The company also incurred $2.0 million in Generative AI Litigation Costs.
Segment Performance
The NYTG segment reported a 4.4% increase in revenues to $585.2 million, with adjusted operating profit rising by 7.1% to $107.1 million. The Athletic segment saw a significant 33.4% increase in revenues to $40.5 million, with its adjusted operating loss decreasing by 69.2% to $2.4 million.
Liquidity and Cash Flow
As of June 30, 2024, New York Times Co (NYT, Financial) had cash and marketable securities of $724.0 million. Net cash provided by operating activities was $133.3 million, and free cash flow was $119.3 million. The company repurchased 208,083 shares of its Class A Common Stock for approximately $9.5 million during the quarter.
For more detailed insights and analysis, visit GuruFocus.com.
Explore the complete 8-K earnings release (here) from New York Times Co for further details.
