NEW YORK TIMES CO
For the period ended Jun 30, 2024. Filed Aug 7, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Aug 7, 2024
NYT$68.36+4.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-03-31; filed 2024-05-08.
0000071691-24-000105
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-06-30; filed 2024-08-07.
0000071691-24-000132
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 140 previous paragraphs and 150 current paragraphs.
84 unchanged; 47 reworded; 14 added; 9 removed; 0 previous and 5 current paragraphs rearranged.
Tables are not compared: 15 previous and 15 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (14)
Current report
•Total revenues increased 5.8% to $625.1 million in the second quarter of 2024 from $590.9 million in the second quarter of 2023.
Current report
•Other revenue increased 4.9% to $66.6 million in the second quarter of 2024 from $63.5 million in the second quarter of 2023, as a result of higher Wirecutter affiliate referral revenues and higher licensing revenues, partially offset by lower books, television, and film revenues.
Current report
Print advertising revenues, which represented 36.0% of total advertising revenues in the first six months of 2024, decreased approximately $8.7 million, or 9.7%, to $80.3 million compared with $88.9 million in the same prior-year period. The decrease in the first six months was primarily due to a 8.5% decrease in column-inches. Print advertising revenues in 2024 continue to be impacted by secular trends.
Current report
Other revenues increased $3.1 million, or 4.9% in the second quarter of 2024 compared with the same prior-year period, primarily as a result of growth in Wirecutter affiliate referral revenues of $2.8 million, as well as higher content licensing revenues of $1.9 million, primarily related to an Apple licensing deal, partially offset by lower books, television and film revenues of $1.8 million.
Current report
Product development costs in the second quarter and first six months of 2024 increased $6.2 million, or 11.0%, and $12.3 million, or 10.9%, compared with the same prior-year periods. The increases in the second quarter and first six months of 2024 were largely due to higher compensation and benefits expenses of $4.0 million and $9.0 million, respectively, driven by incentive compensation and merit increases, as well as higher outside services costs of $1.3 million and $1.8 million, respectively.
Current report
General and administrative costs in the second quarter of 2024 increased $4.6 million, or 6.4%, compared with the same prior-year period. The increase was primarily due to higher compensation and benefits of $2.3 million driven by incentive compensation and merit increases, and higher other expenses of $1.5 million as a result of higher cybersecurity costs and other miscellaneous expenses, partially offset by a favorable contingent consideration adjustment, as well as higher severance expense of $0.8 million.
Current report
General and administrative costs in the first six months of 2024 increased $2.4 million, or 1.5%, compared with the same prior-year period. The increase was primarily due to higher compensation and benefits of $1.9 million driven by incentive compensation and merit increases, higher severance expense of $1.4 million and higher outside services of $0.9 million as a result of higher legal and professional fees, partially offset by lower building operations and maintenance expenses of $2.6 million.
Current report
Depreciation and amortization costs in the second quarter and first six months of 2024 decreased $1.3 million, or 6.0%, and $1.5 million, or 3.4%, compared with the same prior-year periods. The decrease in both periods was primarily due to lower amortization as a result of fully amortized intangible assets in 2024.
Current report
Impairment Charge
Current report
In the second quarter of 2023, the Company recorded a $12.7 million impairment charge related to excess leased office space that is being marketed for sublet.
Current report
NYTG adjusted operating costs increased 3.8% in the second quarter of 2024 to $478.1 million from $460.5 million in the second quarter of 2023 and increased 2.4% in the first six months of 2024 to $950.7 million from $928.0 million in the first six months of 2023. The increase in costs in the second quarter of 2024 was primarily related to higher journalism, product development and general and administrative costs, partially offset by lower print production and distribution costs. The increase in costs in the first six months of 2024 was primarily related to higher journalism and product development costs, partially offset by lower print production and distribution costs, as well as lower sales and marketing costs.
Current report
•$2.0 million of Generative AI Litigation Costs ($1.5 million or $0.01 per share after tax) in the second quarter and $3.0 million ($2.2 million or $0.02 per share after tax) for the first six months.
Current report
•a $12.7 million lease-related impairment charge ($9.3 million or $0.06 per share after tax) in the second quarter.
Current report
On July 27, 2022, the Company entered into an amendment and restatement of its previous credit facility that, among other changes, increased the committed amount to $350.0 million and extended the maturity date to July 27, 2027 (as amended and restated, the “Credit Facility”). Certain of the Company’s domestic subsidiaries have guaranteed the Company’s obligations under the Credit Facility. Borrowings under the Credit Facility bear interest at specified rates based on our utilization and consolidated leverage ratio. The Credit Facility contains various customary affirmative and negative covenants. In addition, the Company is obligated to pay a quarterly unused commitment fee at an annual rate of 0.20%.
Removed paragraphs (9)
Previous report
•Total revenues increased 5.9% to $594.0 million in the first quarter of 2024 from $560.7 million in the first quarter of 2023.
Previous report
•Other revenue increased 7.6% to $61.3 million in the first quarter of 2024 from $57.0 million in the first quarter of 2023, as a result of higher licensing and Wirecutter affiliate referral revenues, partially offset by lower books, television, and film revenues.
Previous report
Product development costs in the first quarter of 2024 increased $6.1 million, or 10.7%, compared with the same prior-year period. The increase was largely due to growth in the number of digital product development employees in connection with digital subscription strategic initiatives.
Previous report
General and administrative costs in the first quarter of 2024 decreased $2.2 million, or 2.8%, compared with the same prior-year period. The decrease was primarily due to lower building operations and maintenance costs of $2.0 million and a favorable change in the fair market value adjustment related to stock-based awards in 2024 of $1.3 million, partially offset by an increase in severance expense of $0.6 million.
Previous report
Depreciation and amortization costs in the first quarter of 2024 were flat compared with the same prior-year period.
Previous report
For comparison purposes, the Company has recast segment results for the first quarter of 2023 to reflect the updated allocation methodology.
Previous report
NYTG adjusted operating costs increased 1.1% in the first quarter of 2024 to $472.7 million from $467.5 million in the first quarter of 2023. The increase in costs was primarily related to higher journalism and product development costs, partially offset by lower general and administrative and sales and marketing costs.
Previous report
•$1.0 million of Generative AI Litigation Costs ($0.7 million or $0.0 per share after tax).
Previous report
There were no special items in the first quarter of 2023.
Reworded paragraphs (47)
Previous wording
We generate revenues principally from the sale of subscriptions and advertising. Subscription revenues consist of revenues from standalone and multiproduct bundle subscriptions to our digital products and subscriptions to and single-copy and bulk sales of our print products. Advertising revenue is derived from the sale of our advertising products and services. Other revenues primarily consist of revenues from licensing, Wirecutter affiliate referrals, commercial printing, the leasing of floors in the New York headquarters building located at 620 Eighth Avenue, New York, New York (the “Company Headquarters”), retail commerce, our live events business, our student subscription sponsorship program and books, television and film.
Current wording
We generate revenues principally from the sale of subscriptions and advertising. Subscription revenues consist of revenues from standalone and multiproduct bundle subscriptions to our digital products and subscriptions to and single-copy and bulk sales of our print products. Advertising revenue is derived from the sale of our advertising products and services. Other revenues primarily consist of revenues from licensing, Wirecutter affiliate referrals, commercial printing, the leasing of floors in the New York headquarters building located at 620 Eighth Avenue, New York, New York (the “Company Headquarters”), retail commerce, books, television and film, our live events business and our student subscription sponsorship program.
Previous wording
The first quarter of 2024 includes an additional day compared with the first quarter of 2023 as a result of 2024 being a leap year.
Current wording
The first six months of 2024 includes an additional day compared with the first six months of 2023 as a result of 2024 being a leap year.
Previous wording
•The Company added approximately 210,000 net digital-only subscribers compared with the end of 2023, driven largely by bundle and multi-product subscriber additions. The Company ended the first quarter of 2024 with approximately 10.55 million subscribers to its print and digital products, including approximately 9.91 million digital-only subscribers. Of the 9.91 million digital-only subscribers, approximately 4.55 million were bundle and multiproduct subscribers. Compared with the end the first quarter of 2023, there was a net increase of 890,000 digital-only subscribers.
Current wording
•The Company added approximately 300,000 net digital-only subscribers compared with the end of the first quarter of 2024, driven largely by bundle and multi-product subscriber additions as well as other single products subscriber additions. The Company ended the second quarter of 2024 with approximately 10.84 million subscribers to its print and digital products, including approximately 10.21 million digital-only subscribers. Of the 10.21 million digital-only subscribers, approximately 4.83 million were bundle and multiproduct subscribers. Compared with the end the second quarter of 2023, there was a net increase of 1,020,000 digital-only subscribers.
Previous wording
•Total digital-only average revenue per user (“ARPU”) increased 1.9% year-over-year to $9.21 driven primarily by subscribers graduating from promotional to higher prices and price increases on tenured non-bundled subscribers.
Current wording
•Total digital-only average revenue per user (“ARPU”) increased 2.1% year-over-year to $9.34 driven primarily by subscribers graduating from promotional to higher prices and price increases on tenured non-bundled subscribers.
Previous wording
•Operating profit increased 73.2% to $48.3 million in the first quarter of 2024 from $27.9 million in the first quarter of 2023. Adjusted operating profit, defined as operating profit before depreciation, amortization, severance, multiemployer pension plan withdrawal costs and special items (a non-GAAP measure discussed below under “Non-GAAP Financial Measures”) increased 40.9% to $76.1 million in the first quarter of 2024 from $54.0 million in the first quarter of 2023. Operating profit margin (operating profit expressed as a percentage of revenues) increased to 8.1% in the first quarter of 2024, compared with 5.0% in the first quarter of 2023. Adjusted operating profit margin, defined as adjusted operating profit expressed as a percentage of revenues (a non-GAAP measure discussed below under “Non-GAAP Financial Measures”), increased to 12.8% in the first quarter of 2024, compared with 9.6% in the first quarter of 2023.
Current wording
•Operating profit increased 42.4% to $79.4 million in the second quarter of 2024 from $55.8 million in the second quarter of 2023. Adjusted operating profit (“AOP”), defined as operating profit before depreciation, amortization, severance, multiemployer pension plan withdrawal costs and special items (a non-GAAP measure discussed below under “Non-GAAP Financial Measures”) increased 13.6% to $104.7 million in the second quarter of 2024 from $92.2 million in the second quarter of 2023. Operating profit margin (operating profit expressed as a percentage of revenues) increased to 12.7% in the second quarter of 2024, compared with 9.4% in the second quarter of 2023. Adjusted operating profit margin, defined as adjusted operating profit expressed as a percentage of revenues (a non-GAAP measure discussed below under “Non-GAAP Financial Measures”), increased to 16.7% in the second quarter of 2024, compared with 15.6% in the second quarter of 2023.
Previous wording
•Total subscription revenues increased 7.9% to $429.0 million in the first quarter of 2024 from $397.5 million in the first quarter of 2023. Digital-only subscription revenues increased 13.2% to $293.0 million in the first quarter of 2024 from $258.8 million in the first quarter of 2023.
Current wording
•Total subscription revenues increased 7.3% to $439.3 million in the second quarter of 2024 from $409.6 million in the second quarter of 2023. Digital-only subscription revenues increased 12.9% to $304.5 million in the second quarter of 2024 from $269.8 million in the second quarter of 2023.
Previous wording
•Total advertising revenues decreased 2.4% to $103.7 million in the first quarter of 2024 from $106.2 million in the first quarter of 2023, due to a decrease of 9.5% in print advertising revenues, partially offset by an increase of 2.9% in digital advertising revenues.
Current wording
•Total advertising revenues increased 1.2% to $119.2 million in the second quarter of 2024 from $117.8 million in the second quarter of 2023, due to an increase of 7.8% in digital advertising revenues, partially offset by a decrease of 10.0% in print advertising revenues.
Previous wording
•Operating costs increased 2.4% to $545.7 million in the first quarter of 2024 from $532.8 million in the first quarter of 2023. Adjusted operating costs, defined as operating costs before depreciation, amortization, severance, multiemployer pension plan withdrawal costs and special items (a non-GAAP measure discussed below under “Non-GAAP Financial Measures”), increased 2.2% to $518.0 million in the first quarter of 2024 from $506.8 million in the first quarter of 2023.
Current wording
•Operating costs increased 2.0% to $545.7 million in the second quarter of 2024 from $535.1 million in the second quarter of 2023. Adjusted operating costs, defined as operating costs before depreciation, amortization, severance, multiemployer pension plan withdrawal costs and special items (a non-GAAP measure discussed below under “Non-GAAP Financial Measures”), increased 4.4% to $520.4 million in the second quarter of 2024 from $498.7 million in the second quarter of 2023.
Previous wording
•Diluted earnings per share were $0.24 and $0.13 for the first quarters of 2024 and 2023, respectively. Adjusted diluted earnings per share, defined as diluted earnings per share excluding amortization of acquired intangible assets, severance, non-operating retirement costs and special items (a non-GAAP measure discussed below under “Non-GAAP Financial Measures”), were $0.31 and $0.19 for the first quarters of 2024 and 2023, respectively.
Current wording
•Diluted earnings per share were $0.40 and $0.28 for the second quarters of 2024 and 2023, respectively. Adjusted diluted earnings per share, defined as diluted earnings per share excluding amortization of acquired intangible assets, severance, non-operating retirement costs and special items (a non-GAAP measure discussed below under “Non-GAAP Financial Measures”), were $0.45 and $0.38 for the second quarters of 2024 and 2023, respectively.
Previous wording
We operate in a highly competitive environment that is subject to rapid change. Companies shaping our competitive environment include content providers and distributors, as well as news aggregators, search engines, social media platforms and emerging products and tools powered by generative artificial intelligence. Competition among these companies is robust, and new competitors can quickly emerge. We have designed our strategy to take advantage of both the challenges and opportunities presented by this period of transformation in our industry.
Current wording
We operate in a highly competitive environment that is subject to rapid change. Companies shaping our competitive environment include content providers and distributors, as well as news aggregators, search engines, social media platforms and emerging products and tools powered by generative artificial intelligence. Competition among these companies is robust, and new competitors can quickly emerge. We have designed our strategy to navigate the challenges and take advantage of opportunities presented by this period of transformation in our industry.
Previous wording
We and the companies with which we do business are subject to risks and uncertainties caused by factors beyond our control, including economic, geopolitical and public health conditions. These include economic weakness, instability, uncertainty and volatility, including the potential for a recession; a competitive labor market and evolving workforce expectations, including for unionized employees; inflation; supply chain disruptions; rising interest rates; and political and sociopolitical uncertainties and conflicts (including the war in Ukraine and the Israel-Hamas war). These factors may result in declines and/or volatility in our results.
Current wording
We and the companies with which we do business are subject to risks and uncertainties caused by factors beyond our control, including economic, geopolitical and public health conditions. These include economic weakness, instability, uncertainty and volatility, including the potential for a recession; a competitive labor market and evolving workforce expectations, including for unionized employees; inflation; supply chain disruptions; rising interest rates; and political and sociopolitical uncertainties and conflicts. These factors may result in declines and/or volatility in our results.
Previous wording
Subscription revenues increased $31.5 million, or 7.9%, in the first quarter of 2024 compared with the same prior-year period, due to an increase in digital-only subscription revenues of $34.2 million, or 13.2%, partially offset by a decrease in print subscription revenues of $2.7 million, or 2.0%. Digital-only subscription revenues increased primarily due to an increase in bundle and multiproduct revenues of $42.9 million and an increase in other single-product subscription revenues of $4.1 million, partially offset by a decrease in news-only subscription revenues of $12.8 million. Bundle and multiproduct average digital-only subscribers increased 1,670,000, or 61.5%, while bundle and multiproduct ARPU decreased $2.54, or 17.7%. Other single-product average digital-only subscribers increased 380,000, or 15.7%, while other single-product ARPU decreased $0.08, or 2.2%. News-only average digital-only subscribers decreased 1,160,000, or 30.6%, while news-only ARPU increased $2.19, or 25.2%. In calculating average digital-only subscribers for our subscriber categories, we use the monthly average number of digital-only subscribers (calculated as the sum of the number of subscribers in each category at the beginning and end of the month, divided by two). Print subscription revenue decreased primarily due to a decrease in home-delivery subscription revenue, which was driven by a lower number of average print subscribers, reflecting secular trends, partially offset by an increase in domestic home-delivery prices.
Current wording
Subscription revenues increased $29.7 million, or 7.3%, in the second quarter of 2024 compared with the same prior-year period, due to an increase in digital-only subscription revenues of $34.7 million, or 12.9%, partially offset by a decrease in print subscription revenues of $5.0 million, or 3.6%. Digital-only subscription revenues increased primarily due to an increase in bundle and multiproduct revenues of $45.4 million and an increase in other single-product subscription revenues of $6.4 million, partially offset by a decrease in news-only subscription revenues of $17.1 million. Bundle and multiproduct average digital-only subscribers increased 1,550,000, or 49.4%, while bundle and multiproduct ARPU decreased $1.44, or 10.7%. Other single-product average digital-only subscribers increased 490,000, or 19.6%, while other single-product ARPU increased $0.08, or 2.2%. News-only average digital-only subscribers decreased 1,080,000, or 31.0%, while news-only ARPU increased $1.97, or 21.2%. In calculating average digital-only subscribers for our subscriber categories, we use the monthly average number of digital-only subscribers (calculated as the sum of the number of subscribers in each category at the beginning and end of the month, divided by two). Print subscription revenue decreased primarily due to a decrease in home-delivery subscription revenue, which was driven by a lower number of average print subscribers, reflecting secular trends, partially offset by an increase in domestic home-delivery prices.
Previous wording
The following table summarizes digital and print subscription revenues for the first quarters of 2024 and 2023:
Current wording
The following table summarizes digital and print subscription revenues for the second quarters and first six months of 2024 and 2023:
Previous wording
A subscriber is defined as a customer who has subscribed (and provided a valid method of payment) for the right to access one or more of the Company’s products. The Company ended the first quarter of 2024 with approximately 10.55 million subscribers to its print and digital products, including approximately 9.91 million digital-only subscribers.
Current wording
A subscriber is defined as a customer who has subscribed (and provided a valid method of payment) for the right to access one or more of the Company’s products. The Company ended the second quarter of 2024 with approximately 10.84 million subscribers to its print and digital products, including approximately 10.21 million digital-only subscribers.
Previous wording
Compared with the end of the fourth quarter of 2023, there was a net increase of 210,000 digital-only subscribers. Compared with the end of the first quarter of 2023, there was a net increase of 890,000 digital-only subscribers.
Current wording
Compared with the end of the first quarter of 2024, there was a net increase of 300,000 digital-only subscribers. Compared with the end of the second quarter of 2023, there was a net increase of 1,020,000 digital-only subscribers.
Previous wording
Print domestic home-delivery subscribers totaled approximately 640,000 at the end of the first quarter of 2024, a net decrease of 20,000 subscribers compared with the end of the fourth quarter of 2023 and a net decrease of 60,000 subscribers compared with the end of the first quarter of 2023. Subscribers with a domestic home-delivery print subscription to The New York Times, which includes access to our digital products, are excluded from digital-only subscribers.
Current wording
Print domestic home-delivery subscribers totaled approximately 630,000 at the end of the second quarter of 2024, a net decrease of 10,000 subscribers compared with the end of the first quarter of 2024 and a net decrease of 60,000 subscribers compared with the end of the second quarter of 2023. Subscribers with a domestic home-delivery print subscription to The New York Times, which includes access to our digital products, are excluded from digital-only subscribers.
Previous wording
Total digital-only ARPU was $9.21 for the first quarter of 2024, an increase of 1.9% compared with the first quarter of 2023. The year-over-year increase was driven primarily by subscribers graduating from promotional to higher prices and from the price increases on tenured non-bundle subscribers.
Current wording
Total digital-only ARPU was $9.34 for the second quarter of 2024, an increase of 2.1% compared with the second quarter of 2023. The year-over-year increase was driven primarily by subscribers graduating from promotional to higher prices and from the price increases on tenured non-bundle subscribers.
Previous wording
Advertising revenue is principally from advertisers (such as technology, financial and luxury goods companies) promoting products, services or brands on digital platforms in the form of display ads, audio and video ads, in print in the form of column-inch ads and at live events. Advertising revenue is primarily derived from offerings sold directly to marketers by our advertising sales teams. A smaller proportion of our total advertising revenues is generated through open-market programmatic auctions run by third-party ad exchanges. Advertising revenue is primarily determined by the volume (e.g., impressions or column inches), rate and mix of advertisements. Digital advertising includes our core digital advertising business and other digital advertising. Our core digital advertising business includes direct-sold website, mobile application, podcast, email and video advertisements (including direct-sold programmatic advertising). Direct-sold display advertising, a component of core digital advertising, includes offerings on websites and mobile applications sold directly to marketers by our advertising sales teams. Other digital advertising includes open-market programmatic advertising and creative services fees. NYTG has revenue from all categories discussed above. The Athletic has revenue from direct-sold display advertising (including direct-sold programmatic advertising), podcast, email and video advertisements and open-market programmatic advertising. Print advertising includes revenue from column-inch ads and classified advertising, as well as preprinted advertising, also known as freestanding inserts. There is no print advertising revenue generated from The Athletic, which does not have a print product.
Current wording
Advertising revenue is principally from advertisers (such as technology, financial and luxury goods companies) promoting products, services or brands on digital platforms in the form of display ads, audio and video ads, in print in the form of column-inch ads and at live events. Advertising revenue is primarily derived from offerings sold directly to marketers by our advertising sales teams. A smaller proportion of our total advertising revenues is generated through open-market programmatic auctions run by third-party ad exchanges. Advertising revenue is primarily determined by the volume (e.g., impressions or column inches), rate and mix of advertisements. Digital advertising includes our core digital advertising business and other digital advertising. Our core digital advertising business includes direct-sold website, mobile application, podcast, email and video advertisements (including direct-sold programmatic advertising). Direct-sold display advertising, a component of core digital advertising, includes offerings on websites and mobile applications sold directly to marketers by our advertising sales teams. Other digital advertising includes open-market programmatic advertising and creative services fees. NYTG has revenue from all categories discussed above. The Athletic has revenue from direct-sold display advertising, podcast, email and video advertisements (including direct-sold programmatic advertising) and open-market programmatic advertising. Print advertising includes revenue from column-inch ads and classified advertising, as well as preprinted advertising, also known as freestanding inserts. There is no print advertising revenue generated from The Athletic, which does not have a print product.
Previous wording
The following table summarizes digital and print advertising revenues for the first quarters of 2024 and 2023:
Current wording
The following table summarizes digital and print advertising revenues for the second quarters and first six months of 2024 and 2023:
Previous wording
Digital advertising revenues, which represented 60.8% of total advertising revenues in the first quarter of 2024, increased $1.8 million, or 2.9%, to $63.0 million compared with $61.3 million in the same prior-year period. The increase was primarily a result of higher other digital revenues of $3.0 million, partially offset by lower revenues in core digital advertising of $1.3 million. Other digital advertising revenues increased primarily due to an increase in creative services fees as a result of more custom advertising campaigns in 2024, as well as an increase in open-market programmatic revenues. Programmatic impressions increased 48%, while the average rate decreased 22%. Core digital advertising revenues decreased due to a decrease in direct-sold display advertising revenues at NYTG and podcast advertising revenues, partially offset by an increase in direct-sold display advertising at The Athletic. Direct-sold display impressions increased 11%, while the average rate decreased 5%.
Current wording
Digital advertising revenues, which represented 64.0% of total advertising revenues in the first six months of 2024, increased $7.5 million, or 5.6%, to $142.6 million compared with $135.1 million in the same prior-year period. The increase was primarily a result of higher other digital revenues of $4.4 million and higher revenues in core digital advertising of $3.2 million. Other digital advertising revenues increased primarily due to an increase in creative services as a result of more custom advertising campaigns in 2024, as well as an increase in open-market programmatic revenues. Open-market programmatic impressions increased 40%, while the average rate decreased 21%. Core digital advertising revenues increased due to an increase in direct-sold display advertising revenues, as well as an increase in revenues from email newsletters, partially offset by a decrease in podcast advertising revenues. Direct-sold display impressions increased 11%, while the average rate decreased 7%.
Previous wording
Print advertising revenues, which represented 39.2% of total advertising revenues in the first quarter of 2024, decreased $4.3 million, or 9.5%, to $40.7 million compared with $45.0 million in the same prior-year period. The decrease in the first quarter of 2024 was primarily due to a 9.3% decrease in column-inches. Print advertising revenues in 2024 continue to be impacted by secular trends.
Current wording
Print advertising revenues, which represented 33.2% of total advertising revenues in the second quarter of 2024, decreased $4.4 million, or 10.0%, to $39.6 million compared with $44.0 million in the same prior-year period. The decrease in the second quarter of 2024 was primarily due to a 7.9% decrease in column-inches. Print advertising revenues in 2024 continue to be impacted by secular trends.
Previous wording
Other revenues primarily consist of revenues from licensing, Wirecutter affiliate referrals, commercial printing, the leasing of floors in the Company Headquarters, retail commerce, our live events business, our student subscription sponsorship program and books, television and film.
Current wording
Other revenues primarily consist of revenues from licensing, Wirecutter affiliate referrals, commercial printing, the leasing of floors in the Company Headquarters, retail commerce, books, television and film, our live events business and our student subscription sponsorship program.
Previous wording
Other revenues increased $4.3 million, or 7.6% in the first quarter of 2024 compared with the same prior-year period, primarily as a result of higher content licensing revenues of $5.7 million, primarily related to a Google commercial agreement and an Apple licensing deal, as well as growth in Wirecutter affiliate referral revenues of $4.0 million, partially offset by lower books, television and film revenues of $5.5 million.
Current wording
Other revenues increased $7.5 million, or 6.2% in the first six months of 2024 compared with the same prior-year period, primarily as a result of higher content licensing revenues of $7.6 million, primarily related to an Apple licensing deal and a Google commercial agreement, as well as growth in Wirecutter affiliate referral revenues of $6.9 million, partially offset by lower books, television and film revenues of $7.3 million.
Previous wording
Digital other revenues, which consist primarily of Wirecutter affiliate referral revenue, digital licensing revenue and our student subscription sponsorship program, totaled $35.8 million and $26.1 million in the first quarters of 2024 and 2023, respectively.
Current wording
Digital other revenues, which consist primarily of Wirecutter affiliate referral revenue and digital licensing revenues, totaled $40.6 million and $38.0 million in the second quarters of 2024 and 2023, respectively, and $76.4 million and $64.1 million in the first six months of 2024 and 2023, respectively.
Previous wording
Building rental revenue from the leasing of floors in the Company Headquarters totaled $6.7 million and $7.3 million in the first quarters of 2024 and 2023, respectively.
Current wording
Building rental revenue from the leasing of floors in the Company Headquarters totaled $6.7 million and $6.5 million in the second quarters of 2024 and 2023, respectively, and $13.3 million and $13.7 million in the first six months of 2024 and 2023, respectively.
Previous wording
Cost of revenue in the first quarter of 2024 increased $10.0 million, or 3.3%, compared with the same prior-year period. The increase was largely due to higher journalism costs of $9.6 million and higher advertising servicing costs of $1.5 million, partially offset by lower print production and distribution costs of $1.2 million. Subscriber servicing costs and digital content delivery costs were relatively flat compared to prior year. The increase in journalism costs was largely due to higher compensation and benefits, which was driven by merit increases and growth in the number of employees who work in our newsrooms. The increase in advertising servicing costs was largely due to higher costs related to creative services fees and an increase in costs to fulfill advertising contracts. The decrease in print production and distribution costs was primarily due to lower newsprint pricing and fewer print copies produced, partially offset by higher distribution and outside printing costs.
Current wording
Cost of revenue in the second quarter of 2024 increased $12.9 million, or 4.1%, compared with the same prior-year period. The increase was largely due to higher journalism costs of $12.3 million and higher advertising servicing costs of $1.9 million, partially offset by lower print production and distribution costs of $2.2 million. Subscriber servicing costs and digital content delivery costs were relatively flat compared to prior year. The increase in journalism costs was largely due to higher compensation and benefits, which was driven by merit increases and growth in the number of employees who work in our newsrooms and higher incentive compensation. The increase in advertising servicing costs was largely due to an increase in costs to fulfill advertising contracts. The decrease in print production and distribution costs was primarily due to lower newsprint pricing and fewer print copies produced, as well as lower benefits costs, partially offset by higher distribution costs.
Previous wording
Sales and marketing costs in the first quarter of 2024 decreased $1.9 million, or 2.8%, compared with the same prior-year period. The decrease was due to lower marketing costs of $4.4 million offset by higher sales costs of $2.5 million. The decrease in marketing costs was primarily due to lower subscriber acquisition spending. The increase in sales costs was primarily due to higher compensation and benefits largely driven by an increase in the number of sales employees and higher accrued bonuses at The Athletic.
Current wording
Sales and marketing costs in the second quarter of 2024 decreased $0.9 million, or 1.5%, compared with the same prior-year period. The decrease was due to lower marketing costs of $3.3 million, partially offset by higher sales costs of $2.4 million. The decrease in marketing costs was primarily due to lower subscriber acquisition spending, as well as lower compensation and benefits costs driven by fewer employees. The increase in sales costs was primarily due to higher compensation and benefits largely driven by merit increases and growth in the number of employees at The Athletic.
Previous wording
Media expenses, a component of sales and marketing costs that represents the cost to promote our subscription business, decreased 6.0% to $29.9 million in the first quarter of 2024 from $31.8 million in the first quarter of 2023. The decrease in the first quarter of 2024 was largely a result of lower subscriber acquisition spending.
Current wording
Media expenses, a component of sales and marketing costs that represents the cost to promote our subscription business, decreased 1.7% to $27.5 million in the second quarter of 2024 from $28.0 million in the second quarter of 2023, and decreased 4.0% to $57.4 million in the first six months of 2024 from $59.8 million in the first six months of 2023. The decrease in the second quarter of 2024 and first six months of 2024 was largely a result of lower subscriber acquisition spending.
Previous wording
In the first quarter of 2024, the Company recorded $1.0 million of pre-tax litigation-related costs in connection with a lawsuit against Microsoft Corporation and Open AI Inc. and various of its corporate affiliates alleging unlawful and unauthorized copying and use of the Company’s journalism and other content in connection with their development of generative artificial intelligence products (“Generative AI Litigation Costs”). Management determined to report Generative AI Litigation Costs as a special item beginning in the first quarter of 2024 because, unlike other litigation expenses, the Generative AI Litigation Costs arise from a discrete, complex and unusual proceeding and do not, in management’s view, reflect the Company’s ongoing business operational performance. See Note 14 of the Notes to the Condensed Consolidated Financial Statements for additional information.
Current wording
In the second quarter and first six months of 2024, the Company recorded $2.0 million and $3.0 million, respectively, of pre-tax litigation-related costs in connection with a lawsuit against Microsoft Corporation and Open AI Inc. and various of its corporate affiliates alleging unlawful and unauthorized copying and use of the Company’s journalism and other content in connection with their development of generative artificial intelligence products (“Generative AI Litigation Costs”). Management determined to report Generative AI Litigation Costs as a special item beginning in the first quarter of 2024 because, unlike other litigation expenses, the Generative AI Litigation Costs arise from a discrete, complex and unusual proceeding and do not, in management’s view, reflect the Company’s ongoing business operational performance. See Note 14 of the Notes to the Condensed Consolidated Financial Statements for additional information.
Previous wording
Prior to April 1, 2023, we allocated bundle revenues first to our digital news product based on its standalone list price and then the remaining bundle revenues were allocated to the other products in the bundle, including The Athletic, based on their relative standalone list prices. Starting April 1, 2023, we allocate 10% of bundle revenues to The Athletic based on management’s view of The Athletic’s relative value to the bundle, which is derived based on analysis of various metrics, and allocate the remaining bundle revenues to NYTG.
Current wording
We allocate 10% of bundle revenues to The Athletic based on management’s view of The Athletic’s relative value to the bundle, which is derived based on analysis of various metrics, and allocate the remaining bundle revenues to NYTG.
Previous wording
Prior to April 1, 2023, we allocated to NYTG and The Athletic direct variable expenses associated with the bundle, which include credit card fees, third party fees and sales taxes, based on a historical actual percentage of these costs to bundle revenues. Starting April 1, 2023, we allocate 10% of product development, marketing and subscriber servicing expenses (including the direct variable expenses referenced above) associated with the bundle to The Athletic, and the remaining costs are allocated to NYTG, in each case, in line with the revenues allocations.
Current wording
We allocate 10% of product development, marketing and subscriber servicing expenses (including direct variable expenses such as credit card fees, third party fees and sales taxes) associated with the bundle to The Athletic, and the remaining costs are allocated to NYTG, in each case, in line with the revenues allocations.
Previous wording
NYTG revenues increased 4.6% in the first quarter of 2024 to $557.4 million from $532.8 million in the first quarter of 2023. Subscription revenues increased 7.3% in the first quarter of 2024 to $401.4 million from $374.2 million in the first quarter of 2023, due to growth in subscription revenues from digital-only products, partially offset by decreases in print subscription revenues. Advertising revenues decreased 4.0% in the first quarter of 2024 to $98.0 million from $102.1 million in the first quarter of 2023, due to declines in print advertising revenues, partially offset by higher digital advertising revenues. Print advertising revenues decreased primarily due to a decrease in column-inches. Digital advertising revenues increased primarily as a result of higher creative services fees and higher open-market programmatic revenues, partially offset by lower direct-sold display advertising and podcast advertising. Other revenues increased 2.6% in the first quarter of 2024 to $58.0 million from $56.5 million in the first quarter of 2023, due to higher Wirecutter affiliate referral revenues and licensing revenues, partially offset by lower book, television, and film revenues.
Current wording
NYTG revenues increased 4.4% in the second quarter of 2024 to $585.2 million from $560.5 million in the second quarter of 2023 and increased 4.5% in the first six months of 2024 to $1,143 million from $1,093 million in the first six months of 2023. Subscription revenues increased 6.5% in the second quarter of 2024 to $410.0 million from $385.0 million in the second quarter of 2023 and increased 6.9% in first six months of 2024 to $811.4 million from $759.2 million in the first six months of 2023 due to growth in subscription revenues from digital-only products, partially offset by decreases in print subscription revenues. Advertising revenues decreased 0.2% in the second quarter of 2024 to $112.1 million from $112.3 million in the second quarter of 2023 due to declines in print advertising revenues, partially offset by higher digital advertising revenues. Digital advertising revenues increased primarily as a result of higher revenues from email newsletters, higher creative services, higher direct-sold display advertising and podcast advertising. Advertising revenues decreased 2.0% to $210.1 million from $214.4 million in the first six months of 2024 due to declines in print advertising revenues, partially offset higher digital advertising revenues. Digital advertising revenues increased primarily as a result of higher creative services and higher programmatic advertising. Other revenues were $63.1 million in the second quarter of 2024, flat compared to prior year. Other revenues increased 1.2% in the first six months of 2024 to $121.1 million from $119.7 million in the first six months of 2023 due to higher Wirecutter affiliate referral revenues and licensing revenues, partially offset by lower book, television, and film revenues.
Previous wording
NYTG adjusted operating profit increased 29.8% in the first quarter of 2024 to $84.7 million from $65.3 million in the first quarter of 2023. The increase in the first quarter of 2024 was primarily as a result of higher digital subscription and other revenues, partially offset by higher adjusted operating costs and lower print advertising revenues.
Current wording
NYTG adjusted operating profit increased 7.1% in the second quarter of 2024 to $107.1 million from $100.0 million in the second quarter of 2023 and increased 16.1% in the first six months of 2024 to $191.8 million from $165.3 million in the first six months of 2023. The increase in the second quarter of 2024 was primarily as a result of higher digital subscription revenue, partially offset by higher adjusted operating costs. The increase in the first six months of 2024 was primarily as a result of higher digital subscription and other revenues, partially offset by higher adjusted operating costs and lower print advertising revenues.
Previous wording
The Athletic revenues increased 33.0% in the first quarter of 2024 to $37.2 million from $28.0 million in the first quarter of 2023. Subscription revenues increased 18.2% in the first quarter of 2024 to $27.6 million from $23.4 million in the first quarter of 2023, primarily due to growth in digital-only subscribers with The Athletic. Other revenue increased in the first quarter of 2024 to $3.8 million from $0.4 million in the first quarter of 2023, primarily due to an increase in licensing revenue from an Apple licensing deal. Advertising revenues increased in the first quarter of 2024 to $5.7 million from $4.2 million in the first quarter of 2023, primarily due to higher revenues from direct-sold display advertising, partially offset by a decrease in podcast advertising.
Current wording
The Athletic revenues increased 33.4% in the second quarter of 2024 to $40.5 million from $30.4 million in the second quarter of 2023 and increased 33.2% in the first six months of 2024 to $77.7 million from $58.3 million in the first six months of 2023. Subscription revenues increased 19.4% in the second quarter of 2024 to $29.3 million from $24.6 million in the second quarter of 2023 and increased 18.8% in the first six months of 2024 to $56.9 million from $47.9 million in the first six months of 2023, primarily due to growth in digital-only subscribers with The Athletic. Other revenue increased in the second quarter of 2024 to $4.1 million from $0.4 million in the second quarter of 2023 and increased in the first six months of 2024 to $8.0 million from $0.8 million in the first six months of 2023, primarily due to an increase in licensing revenue from an Apple licensing deal. Advertising revenues increased 30.0% in the second quarter of 2024 to $7.1 million from $5.4 million in the second quarter of 2023 and increased 33.3% in the first six months of 2024 to $12.8 million from $9.6 million in the first six months of 2023, primarily due to higher revenues from direct-sold display advertising, partially offset by a decrease in podcast advertising.
Previous wording
The Athletic adjusted operating costs increased 16.8% in the first quarter of 2024 to $45.9 million from $39.3 million in the first quarter of 2023. The increase in costs in the first quarter of 2024 was primarily due to higher product development and sales and marketing costs, as well as higher journalism expenses.
Current wording
The Athletic adjusted operating costs increased 12.4% in the second quarter of 2024 to $42.9 million from $38.2 million in the second quarter of 2023 and increased 14.7% in the first six months of 2024 to $88.8 million from $77.4 million in the first six months of 2023. The increase in costs in the second quarter of 2024 was primarily due to higher product development and higher journalism costs, partially offset by lower sales and marketing costs. The increase in costs in the first six months of 2024 was primarily related to higher product development and journalism costs.
Previous wording
The Athletic adjusted operating loss decreased 23.2% in the first quarter of 2024 to $8.7 million in the first quarter of 2024 from $11.3 million in the first quarter of 2023, primarily as a result of higher revenues, partially offset by higher adjusted operating costs.
Current wording
The Athletic adjusted operating loss decreased 69.2% in the second quarter of 2024 to $2.4 million from $7.8 million in the second quarter of 2023 and decreased 42.0% in the first six months of 2024 to $11.1 million from $19.1 million in the first six months of 2023, primarily as a result of higher revenues, partially offset by higher adjusted operating costs.
Previous wording
(1)Amounts may not add due to rounding.
Current wording
(1) Amounts may not add due to rounding.
Previous wording
We believe our cash balance and cash provided by operations, in combination with other sources of cash, will be sufficient to meet our financing needs over the next twelve months. As of March 31, 2024, we had cash, cash equivalents and short- and long-term marketable securities of $686.3 million. Our cash and marketable securities balances between December 31, 2023, and March 31, 2024, decreased primarily due to incentive compensation payments, share repurchases, dividends payments and share-based compensation withholding tax payments, partially offset by higher net income.
Current wording
We believe our cash balance and cash provided by operations, in combination with other sources of cash, will be sufficient to meet our financing needs over the next twelve months. As of June 30, 2024, we had cash, cash equivalents and short- and long-term marketable securities of $724.0 million. Our cash and marketable securities balances between December 31, 2023, and June 30, 2024, increased primarily due to cash proceeds from operating activities, partially offset by share repurchases, dividend payments, share-based compensation withholding tax payments and capital expenditures.
Previous wording
We have paid quarterly dividends on the Class A and Class B Common Stock each quarter since late 2013. In February 2024, the Board of Directors approved an increase in the quarterly dividend to $0.13 per share, which was paid in April 2024. We currently expect to continue to pay comparable cash dividends in the future, although changes in our dividends will be considered by our Board of Directors in light of our earnings, capital requirements, financial condition and other factors considered relevant.
Current wording
We have paid quarterly dividends on the Class A and Class B Common Stock each quarter since late 2013. In February 2024, the Board of Directors approved an increase in the quarterly dividend to $0.13 per share, which was paid in April 2024. On June 27, 2024, the Board of Directors declared a quarterly dividend of $0.13 per share on the Class A and Class B Common Stock, which was paid in July 2024. We currently expect to continue to pay comparable cash dividends in the future, although changes in our dividends will be considered by our Board of Directors in light of our earnings, capital requirements, financial condition and other factors considered relevant.
Previous wording
In February 2023, the Board of Directors approved a $250.0 million Class A share repurchase program in addition to the amount remaining under the existing $150.0 million authorization approved in February 2022. The authorizations provide that shares of Class A Common Stock may be purchased from time to time as market conditions warrant, through open market purchases, privately negotiated transactions or other means, including Rule 10b5-1 trading plans. We expect to repurchase shares to offset the impact of dilution from our equity compensation program and to return capital to our stockholders. There is no expiration date with respect to these authorizations. As of March 31, 2024, repurchases under these authorizations totaled approximately $182.0 million (excluding commissions and excise taxes), fully utilizing the 2022 authorization and leaving approximately $218.0 million under the 2023 authorization. During the quarter ended March 31, 2024, repurchases under these authorizations totaled approximately $32.4 million and we repurchased an additional $5.0 million (excluding commissions and excise taxes) between April 1, 2024 and May 3, 2024, leaving approximately $213.0 million remaining under the 2023 authorization.
Current wording
In February 2023, the Board of Directors approved a $250.0 million Class A share repurchase program in addition to the existing $150.0 million authorization approved in February 2022. The authorizations provide that shares of Class A Common Stock may be purchased from time to time as market conditions warrant, through open market purchases, privately negotiated transactions or other means, including Rule 10b5-1 trading plans. We expect to repurchase shares to offset the impact of dilution from our equity compensation program and to return capital to our stockholders. There is no expiration date with respect to these authorizations. As of June 30, 2024, repurchases under these authorizations totaled approximately $191.5 million (excluding commissions and excise taxes), fully utilizing the 2022 authorization and leaving approximately $208.5 million under the 2023 authorization. During the six months ended June 30, 2024, repurchases under these authorizations totaled approximately $42.0 million and we repurchased an additional $7.0 million (excluding commissions and excise taxes) between July 1, 2024 and August 2, 2024, leaving approximately $201.5 million remaining under the 2023 authorization.
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Current report — wording carried from elsewhere
Subscription revenues increased $61.2 million, or 7.6%, in the first six months of 2024 compared with the same prior-year period, due to an increase in digital-only subscription revenues of $68.9 million, or 13.0%, partially offset by a decrease in print subscription revenues of $7.7 million, or 2.8%. Digital-only subscription revenues increased primarily due to an increase in bundle and multiproduct revenues of $88.4 million and an increase in other single-product subscription revenues of $10.5 million, partially offset by a decrease in news-only subscription revenues of $30.0 million. Bundle and multiproduct average digital-only subscribers increased 1,610,000, or 55.0%, while bundle and multiproduct ARPU decreased $1.96, or 14.2%. Other single-product average digital-only subscribers increased 430,000, or 17.7%, while other single-product ARPU was relatively flat. News-only average digital-only subscribers decreased 1,110,000, or 30.8%, while news-only ARPU increased $2.08, or 23.2%. Print subscription revenue decreased primarily due to a decrease in home-delivery subscription revenue, which was driven by a lower number of average print subscribers, reflecting secular trends, partially offset by an increase in domestic home-delivery prices.
Current report — wording carried from elsewhere
Digital advertising revenues, which represented 66.8% of total advertising revenues in the second quarter of 2024, increased $5.8 million, or 7.8%, to $79.6 million compared with $73.8 million in the same prior-year period. The increase was primarily a result of higher core digital advertising of $4.4 million and higher other digital revenues of $1.4 million. Core digital advertising revenues increased due to an increase in direct-sold display advertising revenues and revenues from email newsletters. Direct-sold display impressions increased 11%, while the average rate decreased 9%. Other digital advertising revenues increased primarily due to an increase in creative services as a result of more custom advertising campaigns in 2024, as well as an increase in open-market programmatic revenues. Open-market programmatic impressions increased 33%, while the average rate decreased 20%.
Current report — wording carried from elsewhere
Cost of revenue in the first six months of 2024 increased $22.9 million, or 3.7%, compared with the same prior-year period. The increase was largely due to higher journalism costs of $21.9 million, higher advertising servicing costs of $3.5 million and higher digital content delivery $1.1 million, partially offset by lower print production and distribution costs of $3.4 million. Subscriber servicing costs were relatively flat compared to prior year. The increase in journalism costs was largely due to higher compensation and benefits, which was driven by merit increases and growth in the number of employees who work in our newsrooms and higher incentive compensation, partially offset by lower content creation costs as a result of fewer television episodes in 2024. The increase in advertising servicing costs was largely due to an increase in costs to fulfill advertising contracts and higher costs related to creative services fees. The increase in digital content delivery costs was largely due to higher cloud related costs. The decrease in print production and distribution costs was primarily due to lower newsprint pricing and fewer print copies produced as well as lower benefit costs, partially offset by higher distribution and outside printing costs.
Current report — wording carried from elsewhere
Sales and marketing costs in the first six months of 2024 decreased $2.8 million, or 2.2%, compared with the same prior-year period. The decrease was due to lower marketing costs of $7.7 million, partially offset by higher sales costs of $4.9 million. The decrease in marketing costs was primarily due to lower subscriber acquisition spending, as well as lower compensation and benefits costs driven by fewer employees. The increase in sales costs was primarily due to higher compensation and benefits largely driven by merit increases and growth in the number of employees at The Athletic.
Current report — wording carried from elsewhere
The special items in 2023 consisted of: