The New York Times Company (NYSE: NYT) reported its fourth-quarter and full-year 2024 results, revealing an addition of approximately 350,000 net digital-only subscribers compared to the end of the third quarter of 2024. This brought the total number of subscribers to 11.43 million, with digital-only subscribers accounting for approximately 10.82 million of the total.
The total digital-only average revenue per user (“ARPU”) increased by 4.4 percent year-over-year to $9.65. This increase was primarily attributed to subscribers transitioning from promotional to higher prices and price increases on tenured non-bundled subscribers.
Furthermore, growth in both digital subscribers and ARPU drove a year-over-year increase in digital subscription revenues of 16.0 percent. Digital advertising revenues also saw a significant increase, rising by 9.5 percent year-over-year, largely due to higher revenues from direct-sold display advertising and programmatic advertising.
The company also reported a 16.3 percent year-over-year increase in other revenue, driven by higher wirecutter affiliate referral and licensing revenues.
However, operating costs increased by 6.0 percent, and adjusted operating costs increased by 6.5 percent year-over-year, mainly due to higher cost of revenue, sales and marketing, and product development expenses.
The operating profit saw a substantial 13.6 percent year-over-year increase to $146.6 million, while adjusted operating profit increased by 10.7 percent year-over-year to $170.5 million. The operating profit margin for the quarter was reported at 20.2 percent, representing a year-over-year increase of approximately 110 basis points.
Diluted earnings per share for the quarter were reported at $0.75, marking a $0.09 increase year-over-year, while adjusted diluted earnings per share stood at $0.80, reflecting a $0.10 increase year-over-year.
In terms of cash flow, net cash from operating activities for full year 2024 increased to $410.5 million compared with $360.6 million in 2023, and free cash flow for full year 2024 rose to $381.3 million compared with $337.9 million in 2023.
The company's board also approved a $350 million class A share repurchase program and declared a 5 cent increase in the company’s dividend to $0.18 per share.
Meredith Kopit Levien, President and Chief Executive Officer of The New York Times Company, expressed confidence in the company's ability to deliver another year of healthy growth in subscribers, revenue, profitability, and strong free cash flow based on the momentum seen in 2024.
The company's quarterly results from the fourth quarter of 2024 compared to the fourth quarter of 2023 revealed a 7.5 percent increase in total revenues, a 6.0 percent increase in total operating costs, and a 23.5 percent adjusted operating profit margin.
Following these announcements, the company's shares moved -12.0%, and are now trading at a price of $49.2. Check out the company's full 8-K submission here.
