New York Times(NYT) - 2024 Q2 - Quarterly Report

Financial Performance - Total revenues for Q2 2024 reached $625.1 million, a 5.8$590.9 million in Q2 2023[14] - Subscription revenues increased to $439.3 million in Q2 2024, up 7.2$409.6 million in Q2 2023[14] - Net income for the first six months of 2024 was $106.0 million, compared to$68.9 million for the same period in 2023, representing a 53.5% increase[14] - Operating profit for Q2 2024 was $79.4 million, a 42.3$55.8 million in Q2 2023[14] - Basic earnings per share for Q2 2024 were $0.40, up from$0.28 in Q2 2023, reflecting a 42.9% increase[14] - Total revenues for the first six months of 2024 were $1.22 billion, a 5.9$1.15 billion in the same period of 2023[35] - Total adjusted operating profit for the first half of 2024 was $180.8 million, a 23.7$146.1 million in the same period of 2023[82] Assets and Liabilities - Total assets decreased to $2.67 billion as of June 30, 2024, down from$2.71 billion as of December 31, 2023[9] - Total current liabilities decreased to $543.1 million as of June 30, 2024, compared to$611.6 million as of December 31, 2023, a reduction of 11.1%[12] - Cash and cash equivalents decreased to $222.9 million as of June 30, 2024, down from$289.5 million as of December 31, 2023[9] - Total stockholders' equity as of June 30, 2024, was $1,804,986,000, up from$1,607,220,000 as of June 30, 2023, reflecting a growth of 12.3%[23] - The company’s total liabilities decreased from $1,607,220,000 as of June 30, 2023, to$1,804,986,000 as of June 30, 2024, reflecting a reduction of 12.3%[23] Cash Flow and Dividends - Cash provided by operating activities for the six months ended June 30, 2024, was $133,310,000, compared to$119,782,000 for the same period in 2023, representing an increase of 11.3%[25] - The company declared dividends of $0.13 per share in Q2 2024, compared to$0.11 per share in Q2 2023[14] - Dividends paid in the first half of 2024 totaled $40,032,000, compared to$33,195,000 in the same period of 2023, indicating an increase of 20.5%[25] Revenue Streams - Subscription revenues for Q2 2024 reached $439.3 million, accounting for 70.3$409.6 million (69.3%) in Q2 2023[35] - Digital-only subscription revenues increased to $304.5 million (69.3$269.8 million (65.9%) in Q2 2023[35] - Advertising revenues for Q2 2024 were $119.2 million, representing 19.1$117.8 million (19.8%) in Q2 2023[35] - Digital advertising revenues grew to $79.6 million (66.8$73.8 million (62.7%) in Q2 2023[36] Stock and Compensation - The company repurchased 911,551 Class A shares in the first half of 2024, costing $42,266,000, compared to repurchases of 1,161,017 shares for$43,591,000 in the same period of 2023[25] - Total stock-based compensation expense for Q2 2024 was $17.034 million, an increase of 28.1$13.253 million in Q2 2023[78] - Stock-based compensation expense increased to $32,890,000 for the six months ended June 30, 2024, from$24,153,000 in the same period of 2023, marking a rise of 36.1%[25] Legal Matters - The company is involved in various legal actions, including a lawsuit against Microsoft and OpenAI for copyright infringement, seeking monetary and injunctive relief[85] - The company recorded $2,000,000 in litigation-related costs in Q2 2024 related to a lawsuit against Microsoft and OpenAI[57] Taxation - Income tax expense for the second quarter of 2024 was$21.5 million, an increase from $14.4 million in the second quarter of 2023, reflecting a rise of approximately 49.3$2,101,000, compared to a cost of $(144,000) for the same period in 2023, indicating a significant increase[67] - The company recognized severance costs of$5,900,000 for the first six months of 2024, an increase from $4,500,000 in the same period of 2023[55] - As of June 30, 2024, the company had a severance liability of$7,200,000, up from $4,400,000 as of December 31, 2023[56] Market Outlook - The company expects to recognize approximately$47 million, $78 million, and$31 million from remaining performance obligations in 2024, 2025, and thereafter through 2028, respectively[37] - The company expects to make contractual contributions of approximately $12 million to the pension plan in 2024, which exceeds the minimum funding requirements[67]