New York Times (NYT) Up 0.7% Since Last Earnings Report: Can It Continue?

Core Viewpoint - The New York Times Company demonstrated solid performance in Q2 2024, with adjusted earnings per share and total revenues exceeding expectations, driven by growth in digital subscriptions and advertising revenues [2][4]. Financial Performance - Adjusted earnings per share for Q2 2024 were 45 cents, surpassing the Zacks Consensus Estimate of 40 cents, and up from 38 cents in the previous year [2]. - Total revenues reached $625.1 million, exceeding the Zacks Consensus Estimate of $623 million, marking a 5.8% year-over-year increase [2]. - Subscription revenues amounted to $439.3 million, reflecting a 7.3% year-over-year growth, with digital-only subscription revenues increasing by 12.9% to $304.5 million [3]. Subscriber Growth - The company added approximately 300,000 net digital-only subscribers, bringing the total to about 10.21 million digital-only subscribers, with 4.83 million being bundle and multiproduct subscribers [4][6]. - The overall subscriber base across print and digital products reached roughly 10.84 million [4]. Revenue Breakdown - Digital advertising revenues rose 7.8% to $79.6 million, while print advertising revenues fell 10% to $39.6 million [4]. - Other revenues increased by 4.9% year over year to $66.6 million, driven by higher licensing and affiliate referral revenues [5]. Cost and Profitability - Adjusted operating costs rose 4.4% to $520.4 million, with expectations of a 5-6% increase in Q3 2024 [5]. - Total adjusted operating profit increased 13.6% to $104.7 million, with an adjusted operating margin expanding by 110 basis points to 16.7% [5]. Future Outlook - Management anticipates total subscription revenues to grow by 7-9% in Q3 2024, with digital-only subscription revenues expected to rise by 12-15% [4]. - The company forecasts flat to low-single-digit growth in total advertising revenues for Q3 2024, with a high-single-digit increase in digital advertising revenues [5]. Capital Management - The company ended the quarter with cash and marketable securities of approximately $724 million, reflecting an increase from $709.2 million at the end of 2023 [7]. - Free cash flow generated during the first half of 2024 was $119.3 million, and the company repurchased 208,083 shares for about $9.5 million [7].