New York Times: Q4 EPS Beats Forecast

Core Viewpoint - The New York Times Co. reported strong Q4 earnings with notable digital growth and resilient multi-revenue streams, despite facing challenges in print advertising and rising operating costs [1][2]. Financial Performance - Adjusted earnings per share (EPS) for Q4 2024 were $0.80, exceeding analysts' consensus of$ 0.75, while total revenue was $726.6 million, slightly below the estimate of$ 726.8 million [1][3]. - Year-over-year revenue growth was 7.5%, up from $676.2 million in Q4 2023 [3]. - Digital-only subscription revenue increased by 16% year-over-year to$ 334.9 million [3][7]. - Adjusted operating profit rose to $170.5 million, a 10.7% increase from the previous year [3][8]. - Digital advertising revenue grew by 9.5% to$ 117.9 million, aided by The Athletic's contribution [3][7]. Subscriber Growth - The company added approximately 350,000 net new digital-only subscribers in Q4, bringing the total to 11.43 million, an annual increase of 1.10 million [6]. - Digital-only average revenue per user (ARPU) increased by 4.4% to $9.65, driven by pricing adjustments [6]. Operational Insights - Operating costs increased by 6%, with marketing and sales expenses rising by 21.3% due to higher promotional activities [8]. - The company faced a 7.1% decline in print subscription revenue, consistent with industry trends towards digital preferences [7]. Strategic Focus - The New York Times Co. emphasizes digital transformation, focusing on increasing digital subscriptions and diversifying content offerings beyond traditional news [4]. - Investments in technology, particularly data management, are crucial for enhancing user engagement and operational efficiency [5]. Future Outlook - The company forecasts digital-only subscription revenue growth of 14% to 17% for Q1 2025, with a mid-single-digit increase anticipated in other revenue streams [12]. - Adjusted operating costs are expected to grow by 5% to 6%, reflecting planned investments in technology and content enhancements [12]. - The company plans to reward shareholders with a 38% increase in dividends and has approved a$ 350 million Class A share repurchase program [10].