The New York Times Company (NYT) Bundle
A Brief History of The New York Times Company
Company Overview
Company Overview
The New York Times Company, established in 1851, has evolved into a leading media organization, renowned for its journalism and digital content. As of 2024, the company operates various segments including The New York Times Group (NYTG) and The Athletic, focusing on both print and digital platforms.
Financial Performance
In the third quarter of 2024, total revenues increased by 7.0% to $640.2 million compared to $598.3 million in the same period of 2023. For the first nine months of 2024, revenues rose by 6.2% to $1.859 billion from $1.750 billion year-over-year.
| Financial Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $640.2 million | $598.3 million | $1.859 billion | $1.750 billion |
| Operating Profit | $76.7 million | $63.6 million | $284.9 million | $235.9 million |
| Net Income | $170.1 million | $122.5 million | $170.1 million | $122.5 million |
| Free Cash Flow | $237.7 million | $207.6 million | N/A | N/A |
Subscriber Growth
As of September 30, 2024, the company reported approximately 11.09 million subscribers across its print and digital products, with around 10.47 million being digital-only subscribers. This marks a net increase of 1.06 million digital-only subscribers compared to the previous year.
Cost Structure
Adjusted operating costs for the third quarter of 2024 were $494.5 million, reflecting a 6.1% increase from $466.2 million in the prior year. The increase was primarily due to higher journalism and sales and marketing costs.
| Cost Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Operating Costs | $563.5 million | $534.8 million | $1.654 billion | $1.602 billion |
| Cost of Revenue | $331.8 million | $311.1 million | $971.5 million | $927.9 million |
| Sales and Marketing | $69.1 million | $62.6 million | $195.6 million | $191.9 million |
| Product Development | $61.0 million | $57.4 million | $186.4 million | $170.5 million |
Capital and Investment
As of September 30, 2024, the New York Times Company held cash, cash equivalents, and short- and long-term marketable securities totaling $820.4 million. The company made capital expenditures of approximately $21.1 million in the first nine months of 2024.
Dividends and Share Repurchases
The company declared a quarterly dividend of $0.13 per share in 2024, with total dividend payments amounting to $61.5 million in the first nine months. Share repurchases totaled approximately $60.3 million in the same period.
Outlook
Looking ahead, The New York Times Company projects continued growth in digital subscriptions and revenues, driven by enhanced content offerings and strategic marketing efforts.
A Who Owns The New York Times Company (NYT)
Ownership Structure
The New York Times Company is publicly traded on the New York Stock Exchange under the ticker symbol NYT. As of 2024, the company has two classes of common stock: Class A and Class B. Class A shares are publicly traded, while Class B shares are primarily held by the Sulzberger family, who have maintained control of the company for generations.
Major Shareholders
As of September 30, 2024, the principal shareholders of The New York Times Company include:
- The Sulzberger family, through the Class B shares, holds approximately 90% of the voting power despite owning a smaller percentage of the total shares.
- Institutional investors and mutual funds represent a significant portion of Class A shares, including:
- Vanguard Group, Inc. - approximately 8.5% ownership
- BlackRock, Inc. - approximately 7.1% ownership
- Other institutional investors collectively hold around 25% of Class A shares.
Stock Performance
As of early 2024, the stock price of The New York Times Company has shown resilience amidst market fluctuations. The stock price has ranged between $35 and $45 over the past 12 months.
Financial Highlights
For the third quarter of 2024, The New York Times Company reported:
- Total revenues of $640.2 million, an increase of 7.0% year-over-year.
- Subscription revenues reached $453.3 million, up 8.3% compared to the same period last year.
- Digital-only subscription revenues increased by 14.2% to $322.2 million.
- Net income for the quarter was $64.1 million, reflecting a 19.6% increase from the prior year.
Table of Shareholder Information
| Shareholder | Type of Share | Ownership Percentage | Voting Power |
|---|---|---|---|
| Sulzberger Family | Class B | ~0.5% | ~90% |
| Vanguard Group, Inc. | Class A | ~8.5% | ~8.5% |
| BlackRock, Inc. | Class A | ~7.1% | ~7.1% |
| Other Institutional Investors | Class A | ~25% | ~25% |
Recent Developments
In February 2024, the Board of Directors approved an increase in the quarterly dividend to $0.13 per share, reflecting the company's strong financial position. The company has consistently paid dividends quarterly since 2013.
As of September 30, 2024, The New York Times Company reported cash and cash equivalents of approximately $204.6 million and marketable securities of about $615.8 million, indicating a stable liquidity position.
Market Trends
The New York Times Company continues to adapt to the changing landscape of media consumption, focusing on digital subscriptions which now account for a significant portion of their total revenues. The company ended the third quarter of 2024 with approximately 11.09 million subscribers, of which 10.47 million are digital-only subscribers.
The New York Times Company (NYT) Mission Statement
Mission Statement Overview
The New York Times Company's mission statement emphasizes its commitment to delivering high-quality journalism that informs, engages, and empowers its audience. The organization aims to uphold its reputation for integrity and excellence in reporting, while adapting to the evolving media landscape.
Financial Performance Indicators
As of the third quarter of 2024, the financial performance of The New York Times Company reflects its strategic focus on digital growth and operational efficiency. Key financial data includes:
| Metric | Q3 2024 | Q3 2023 | % Change |
|---|---|---|---|
| Total Revenues | $640.2 million | $598.3 million | 7.0% |
| Subscription Revenues | $453.3 million | $418.6 million | 8.3% |
| Advertising Revenues | $118.4 million | $117.1 million | 1.1% |
| Adjusted Operating Profit | $104.2 million | $89.8 million | 16.1% |
| Diluted Earnings per Share | $0.39 | $0.32 | 21.9% |
Subscriber Metrics
The New York Times Company has experienced significant growth in its subscriber base, particularly in digital-only subscriptions. As of September 30, 2024, the subscriber metrics are as follows:
| Subscriber Category | Count (in thousands) |
|---|---|
| Total Subscribers | 11,090 |
| Digital-Only Subscribers | 10,470 |
| Print Subscribers | 620 |
Revenue Breakdown
The revenue breakdown by segment illustrates the growing importance of digital offerings in The New York Times Company's business model:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | % Change |
|---|---|---|---|
| NYTG Subscription | $422,192 | $392,937 | 7.4% |
| NYTG Advertising | $109,324 | $108,672 | 0.6% |
| The Athletic Subscription | $31,135 | $25,640 | 21.4% |
| The Athletic Advertising | $9,046 | $8,441 | 7.2% |
Operating Costs and Profitability
Operating costs have increased, reflecting investments in journalism and marketing, but the company has maintained profitability:
| Cost Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Total Operating Costs | $563,500 | $534,800 | 5.4% |
| Adjusted Operating Costs | $536,000 | $508,600 | 5.4% |
Market Position and Strategic Focus
The New York Times Company continues to position itself as a leader in digital journalism. The strategic focus includes:
- Enhancing digital subscription offerings.
- Investing in technology and innovation.
- Expanding advertising revenue through digital channels.
Conclusion
The New York Times Company's mission statement underscores its dedication to quality journalism and its adaptation to the digital age. The financial metrics indicate robust growth in revenues and subscribers, highlighting the effectiveness of its strategic initiatives.
How The New York Times Company (NYT) Works
Overview of Operations
The New York Times Company operates primarily through two segments: The New York Times Group (NYTG) and The Athletic. As of September 30, 2024, the company had approximately 11.09 million total subscribers, with about 10.47 million being digital-only subscribers.
Financial Performance
In the third quarter of 2024, the company reported total revenues of $640.2 million, an increase of 7.0% compared to $598.3 million in the same quarter the previous year. For the first nine months of 2024, total revenues reached $1.86 billion, a 6.2% increase from $1.75 billion in the prior year.
| Revenue Source | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Total Subscription Revenues | $453,327 | $418,577 | 8.3% |
| Total Advertising Revenues | $118,370 | $117,113 | 1.1% |
| Other Revenues | $68,481 | $62,655 | 9.3% |
| Total Revenues | $640,178 | $598,345 | 7.0% |
Subscription Revenue Breakdown
As of September 30, 2024, the breakdown of subscription revenues was as follows:
| Type of Subscription | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Digital-only Subscription Revenues | $322,198 | $282,228 | 14.2% |
| Print Subscription Revenues | $131,129 | $136,349 | (3.8%) |
| Total Subscription Revenues | $453,327 | $418,577 | 8.3% |
Advertising Revenue Trends
Advertising revenues for the third quarter of 2024 were $118.4 million, reflecting a 1.1% increase from $117.1 million in Q3 2023. Digital advertising revenues accounted for 68.9% of total advertising revenues, amounting to $81.6 million, up 8.8% from $75.0 million the previous year.
| Advertising Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Digital Advertising Revenues | $81,564 | $75,001 | 8.8% |
| Print Advertising Revenues | $36,806 | $42,112 | (12.6%) |
| Total Advertising Revenues | $118,370 | $117,113 | 1.1% |
Operating Costs and Profitability
The total operating costs for the third quarter of 2024 were $563.5 million, a 5.4% increase from $534.8 million in the same quarter of 2023. Adjusted operating costs increased to $535.9 million from $508.6 million year-over-year.
| Cost Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Total Operating Costs | $563,451 | $534,778 | 5.4% |
| Adjusted Operating Costs | $535,997 | $508,590 | 5.4% |
Net Income and Earnings Per Share
For the third quarter of 2024, the net income was $64.1 million, compared to $53.6 million in Q3 2023. Diluted earnings per share were $0.39 for Q3 2024, compared to $0.32 in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income (in thousands) | $64,143 | $53,615 |
| Diluted Earnings Per Share | $0.39 | $0.32 |
Cash and Marketable Securities
As of September 30, 2024, the company reported cash, cash equivalents, and marketable securities totaling $820.4 million, up from previous periods due to cash generated from operating activities.
Conclusion
The New York Times Company continues to adapt to the changing media landscape, focusing on digital subscriptions and advertising to drive revenue growth.
How The New York Times Company (NYT) Makes Money
Revenue Streams
The New York Times Company generates revenue through three primary segments: Subscription Revenues, Advertising Revenues, and Other Revenues.
| Revenue Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change | 9M 2024 (in thousands) | 9M 2023 (in thousands) | % Change |
|---|---|---|---|---|---|---|
| Subscription Revenues | $453,327 | $418,577 | 8.3% | $1,321,654 | $1,225,709 | 7.8% |
| Advertising Revenues | $118,370 | $117,113 | 1.1% | $341,244 | $341,124 | 0.0% |
| Other Revenues | $68,481 | $62,655 | 9.3% | $196,392 | $183,104 | 7.3% |
| Total Revenues | $640,178 | $598,345 | 7.0% | $1,859,290 | $1,749,937 | 6.2% |
Subscription Revenues
The subscription model includes digital and print products. As of September 30, 2024, the company had approximately 11.09 million subscribers, with around 10.47 million being digital-only subscribers.
Digital-only subscription revenues reached $322,198,000 in Q3 2024, representing a 14.2% increase from Q3 2023. Print subscription revenues decreased to $131,129,000, a decline of 3.8% year-over-year.
| Subscription Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Digital-only Subscription Revenues | $322,198 | $282,228 | 14.2% |
| Print Subscription Revenues | $131,129 | $136,349 | (3.8%) |
Advertising Revenues
Advertising revenues are comprised of both digital and print segments. For Q3 2024, digital advertising revenues increased by 8.8% to $81,564,000, while print advertising revenues decreased by 12.6% to $36,806,000.
| Advertising Type | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Digital Advertising Revenues | $81,564 | $75,001 | 8.8% |
| Print Advertising Revenues | $36,806 | $42,112 | (12.6%) |
Other Revenues
Other revenues, which include affiliate referral revenues from Wirecutter and licensing revenues, increased by 9.3% to $68,481,000 in Q3 2024.
Operating Costs
Operating costs for Q3 2024 rose to $563,451,000, representing a 5.4% increase from Q3 2023, largely due to higher journalism and sales and marketing expenses.
| Cost Category | Q3 2024 (in thousands) | Q3 2023 (in thousands) | % Change |
|---|---|---|---|
| Total Operating Costs | $563,451 | $534,778 | 5.4% |
Adjusted Operating Profit
The adjusted operating profit for the New York Times Company was $104,181,000 in Q3 2024, a 16.1% increase from Q3 2023.
| Period | Adjusted Operating Profit (in thousands) | % Change |
|---|---|---|
| Q3 2024 | $104,181 | 16.1% |
| Q3 2023 | $89,755 | - |
Earnings Per Share
The diluted earnings per share for Q3 2024 were $0.39, an increase from $0.32 in Q3 2023. Adjusted diluted earnings per share were $0.45 compared to $0.37 in the same quarter the previous year.
| Period | Diluted EPS | Adjusted Diluted EPS |
|---|---|---|
| Q3 2024 | $0.39 | $0.45 |
| Q3 2023 | $0.32 | $0.37 |
Net Income
The net income for Q3 2024 was $64,143,000, compared to $53,615,000 for Q3 2023, reflecting an increase of 19.6%.
| Period | Net Income (in thousands) |
|---|---|
| Q3 2024 | $64,143 |
| Q3 2023 | $53,615 |
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Resources:
- The New York Times Company (NYT) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of The New York Times Company (NYT)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View The New York Times Company (NYT)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.