NEW YORK TIMES CO

Overview

The following table presents our consolidated financial results for the years ended December 31, 2024, and 2023:

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Revenues

Subscription, advertising and other revenues were as follows:

Subscription Revenues

Subscription revenues consist of revenues from subscriptions to our digital and print products (which include our news product, as well as The Athletic and our Audio, Cooking, Games and Wirecutter products), and single-copy and bulk sales of our print products (which represented less than 5% of our subscription revenues in 2024 and 2023). Subscription revenues are based on both the number of digital-only subscriptions and copies of the printed newspaper sold, and the rates charged to the respective customers.

We offer a digital-only bundle that includes access to our digital news product (which includes our news website, NYTimes.com, and mobile application), as well as The Athletic and our Audio, Cooking, Games and Wirecutter products. Our subscriptions also include standalone digital subscriptions to each of these products.

Subscription revenues increased $132.1 million, or 8.0%, in 2024 compared with 2023, primarily due to an increase in digital-only subscription revenues of $155.2 million, or 14.1%, partially offset by a decrease in print subscription revenues of $23.1 million, or 4.1%. Digital-only subscription revenues increased primarily due to an increase in bundle and multiproduct revenues of $199.3 million and an increase in other single-product subscription revenues of $26.8 million, partially offset by a decrease in news-only subscription revenues of $70.9 million. Bundle and multiproduct average digital-only subscribers increased 1,480,000, or 44.2%, while bundle and multiproduct ARPU (as defined below) decreased $0.87, or 6.7%. Other single-product average digital-only subscribers increased 540,000, or 21.4%, while other single-product ARPU increased $0.03, or 0.8%. News-only average digital-only subscribers decreased 1,020,000, or 30.6%, while news-only ARPU increased $1.82, or 19.1%. 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.

The following table summarizes digital and print subscription revenues for the years ended December 31, 2024, and December 31, 2023:

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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 2024 with approximately 11.43 million subscribers to its print and digital products, including approximately 10.82 million digital-only subscribers. Compared with 2023, there was a net increase of 1,110,000 digital-only subscribers.

Print domestic home-delivery subscribers totaled approximately 610,000 at the end of 2024, a net decrease of 50,000 subscribers compared with the end 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.

The following table sets forth subscribers as of the end of the five most recent fiscal quarters:

The following table sets forth the subset of subscribers above who have a paid digital-only standalone subscription or a bundle subscription that includes the ability to access The Athletic as of the end of the five most recent fiscal quarters. The Company plans to discontinue reporting this metric after the fourth quarter of 2024. Digital-only subscribers with The Athletic will continue to be included in our reported bundle and multiproduct and other single-product subscriber categories.

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ARPU, a metric we calculate to track the revenue generation of our digital subscriber base, represents the average revenue per subscriber over a 28-day billing cycle during the applicable period. The following table sets forth ARPU metrics relating to the above digital-only subscriber categories for the two most recent fiscal years:

Total digital-only ARPU was $9.42 for December 31, 2024, an increase of 2.6% compared with December 31, 2023. The year-over-year increase was driven primarily by subscribers graduating from promotional to higher prices and price increases on tenured non-bundled subscribers.

Advertising Revenues

Advertising revenue is principally from advertisers (such as luxury goods, technology and financial companies) promoting products, services or brands on digital platforms in the form of display, 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 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 consists of direct-sold display (which includes website and mobile applications), podcast, email and video advertisements that are sold directly to marketers by our advertising sales teams. Other digital advertising includes programmatic advertising and creative services fees. NYTG and The Athletic has revenue from all categories discussed above. 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.

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The following table summarizes digital and print advertising revenues for the years ended December 31, 2024, and December 31, 2023:

Digital advertising revenues, which represented 67.6% of the total advertising revenues in 2024, increased $24.3 million, or 7.7%, to $342.1 million compared with $317.7 million in 2023. The increase was primarily a result of higher core digital advertising of $12.3 million and higher other digital revenues of $12.1 million. Core digital advertising revenues increased due to higher direct-sold display advertising and revenues from email newsletters, partially offset by a decrease in podcast advertising revenues. Direct-sold display impressions increased 10%, while the average rate decreased 5%. Other digital advertising revenue increased primarily due to an increase in programmatic revenues largely driven by new advertising supply across our products and an increase in creative services as a result of more custom advertising campaigns in 2024. Programmatic impressions increased 40%, while the average rate decreased 18%.

Print advertising revenues, which represented 32.4% of total advertising revenues in 2024, decreased $23.2 million, or 12.4%, to $164.2 million compared with $187.5 million in 2023. The decrease in 2024 was due to a 13.6% decrease in column-inches. Print advertising revenues in 2024 continue to be impacted by secular trends.

We believe the macroeconomic environment has had, and may in the future have, an adverse impact on both digital and print advertising spending. Additionally, we believe that there may be marketer sensitivity to some news topics, impacting overall advertising spend.

Other Revenues

Other revenues primarily consist of revenues from Wirecutter affiliate referrals, licensing, commercial printing, the leasing of floors in our Company Headquarters, our live events business, retail commerce, books, television and film and our student subscription sponsorship program. Digital other revenues, which consist primarily of Wirecutter affiliate referral revenues and digital licensing revenue, totaled $186.1 million and $152.0 million in 2024 and 2023, respectively. Building rental revenue from the leasing of floors in the Company Headquarters totaled $26.6 million and $27.2 million in 2024 and 2023, respectively.

Other revenues increased $26.6 million, or 10.0% in 2024 compared with 2023, primarily as a result of growth in Wirecutter affiliate referral revenues of $17.1 million, as well as higher content licensing revenues of $14.9 million, primarily related to an Apple licensing deal, partially offset by lower books, television and film revenues of $7.8 million.

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Operating Costs

Operating costs were as follows:

The components of operating costs as a percentage of total operating costs were as follows:

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The components of operating costs as a percentage of total revenues were as follows:

Cost of Revenue (excluding depreciation and amortization)

Cost of revenue includes all costs related to content creation, subscriber and advertiser servicing, and print production and distribution as well as infrastructure costs related to delivering digital content, which include all cloud and cloud-related costs as well as compensation for employees that enhance and maintain that infrastructure.

Cost of revenue in 2024 increased $60.5 million, or 4.8%, compared with 2023, largely due to higher journalism costs of $46.2 million, higher digital content delivery costs of $7.5 million, higher advertising servicing costs of $7.1 million and higher subscriber servicing costs of $6.5 million, partially offset by lower print production and distribution costs of $6.8 million. The increase in journalism costs was largely due to higher compensation and benefits, which was driven by higher salaries and growth in the number of employees who work in our newsrooms. The increase in digital content delivery costs was largely due to higher cloud-related costs. The increase in advertising servicing costs was largely due to an increase in costs to fulfill advertising contracts and higher creative services fees. The increase in subscriber servicing costs was largely due to higher third-party commissions and credit card processing fees due to increased subscriptions, partially offset by lower customer care costs. The decrease in print production and distribution costs was primarily due to lower newsprint pricing and fewer print copies produced.

Sales and Marketing

Sales and marketing includes costs related to the Company’s subscription and brand marketing efforts as well as advertising sales costs.

Sales and marketing costs in 2024 increased $18.2 million, or 7.0%, compared with 2023, primarily due to higher sales costs of $9.9 million and higher marketing costs of $8.3 million. The increase in sales costs was primarily due to higher compensation and benefits largely driven by growth in the number of employees and higher salaries, as well as higher outside services costs. The increase in marketing costs was primarily due to higher media expenses, partially offset by lower compensation and benefits costs driven by fewer employees.

Media expenses, a component of sales and marketing costs that represents the cost to promote our subscription business, increased 17.9% to $138.8 million in 2024 from $117.7 million in 2023. The increase was largely a result of higher subscriber acquisition spending, partially offset by lower brand spend.

Product Development

Product development includes costs associated with the Company’s investment in developing and enhancing new and existing product technology, including engineering, product development and data insights.

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Product development costs in 2024 increased $19.4 million, or 8.5%, compared with 2023, largely due to higher compensation and benefits expenses driven by incentive compensation and higher salaries, as well as higher outside services costs.

General and Administrative Costs

General and administrative costs include general management, corporate enterprise technology, building operations, unallocated overhead, severance and multiemployer pension plan withdrawal costs.

General and administrative costs in 2024 decreased $3.1 million, or 1.0%, compared with 2023, primarily due to lower building operations and maintenance expenses of $3.4 million.

Depreciation and Amortization

Depreciation and amortization costs in 2024 decreased $3.2 million, or 3.7%, compared with 2023. The decrease is primarily due to lower amortization as a result of fully amortized intangible assets in 2024.

Generative AI Litigation Costs

In 2024, the Company recorded $10.8 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 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 10 of the Notes to the Consolidated Financial Statements for additional information.

Impairment Charges

There were no impairment charges in 2024.

In 2023, the Company recorded a $12.7 million impairment charge related to excess leased office space that is being marketed for sublet (the “lease-related impairment”).

In 2023 the Company recorded impairment charges of $2.5 million related to an indefinite-lived intangible asset.

Multiemployer Pension Plan Liability Adjustment

In 2024 and 2023, the Company recorded favorable adjustments related to a reduction in its multiemployer pension plan liability of $3.0 million and $2.3 million, respectively.

In 2023 the Company recorded a charge of $1.7 million in connection with its withdrawal from a multiemployer pension plan.

Segment Information

We have two reportable segments: NYTG and The Athletic. Management uses adjusted operating profit (loss) by segment in assessing performance and allocating resources. The Company includes in its presentation, revenues and adjusted operating costs to arrive at adjusted operating profit (loss) by segment. Adjusted operating costs are defined as operating costs before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items. Adjusted operating profit is defined as operating profit before depreciation and amortization, severance, multiemployer pension plan withdrawal costs and special items. Adjusted operating profit expressed as a percentage of revenues is referred to as adjusted operating profit margin.

Subscription revenues from and expenses associated with our bundle are allocated to NYTG and The Athletic.

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.

We allocate 10% of product development, marketing and subscriber servicing expenses (including the direct variable expenses such as credit card 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.

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The New York Times Group

NYTG revenues increased in 2024 to $2.4 billion from $2.3 billion in 2023. Subscription revenues increased 7.2% in 2024 to $1.7 billion from $1.6 billion in 2023 due to growth in subscription revenues from digital-only products, partially offset by decreases in print subscription revenues. Advertising revenues decreased 0.9% in 2024 to $472.9 million from $477.3 million in 2023 due to declines in print advertising revenues, partially offset by higher digital advertising revenues. Print advertising revenues decreased primarily as a result of a decrease in column-inches. Digital advertising revenues increased primarily as a result of higher revenues from programmatic advertising, direct-sold display advertising and creative services. Other revenues increased 4.8% in 2024 to $275.2 million from $262.6 million in 2023 due to higher Wirecutter affiliate referral revenues, partially offset by lower book, television and film revenues.

NYTG adjusted operating costs increased 4.3% in 2024 to $2.0 billion from $1.9 billion in 2023. The increase in costs in 2024 was primarily due to higher journalism, sales and marketing, subscriber and advertising servicing and product development costs, partially offset by lower print production and distribution costs, as well as lower general and administrative costs.

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NYTG adjusted operating profit increased 9.3% in 2024 to $460.4 million from $421.3 million in 2023. The increase in 2024 was primarily as a result of higher digital subscription, digital advertising and other revenues, partially offset by higher adjusted operating costs and lower print advertising revenues and print subscription revenues.

The Athletic

The Athletic’s revenues increased 31.1% in 2024 to $172.1 million from $131.3 million in 2023. Subscription revenues increased 19.7% in 2024 to $120.3 million from $100.4 million in 2023, primarily due to growth in digital-only subscribers with The Athletic. Other revenues increased in 2024 to $18.5 million from $2.9 million in 2023, primarily due to an increase in licensing revenue from an Apple licensing deal. Advertising revenues increased 19.4%in 2024 to $33.4 million from $27.9 million in 2023, primarily due to higher revenues from direct-sold display advertising, partially offset by a decrease in podcast advertising.

The Athletic’s adjusted operating costs increased 8.8% in 2024 to $177.1 million from $162.7 million in 2023. The increase in costs in 2024 was primarily due to higher product development and journalism costs, partially offset by lower sales and marketing costs as some media spend was shifted to NYTG for bundle marketing.

The Athletic’s adjusted operating loss decreased 84.1% to $5.0 million in 2024 from $31.4 million in 2023, primarily as a result of higher digital subscription and other revenues, partially offset by higher adjusted operating costs.

Other Items

See Note 10 of the Notes to the Consolidated Financial Statements for more information regarding other items.