Financial Data and Key Metrics Changes - The total operating revenue for the second quarter was $137 million, showing an improvement in trend from the first quarter despite the impact of a cyber incident [12] - The net loss for the quarter totaled $12 million, which included expenses associated with debt, even though payments were waived [22] - Free cash flow was minimal, but the company expects to be free cash flow positive in the second half of fiscal year 2025 due to significant changes in cost structure [22] Business Line Data and Key Metrics Changes - Total digital revenue grew 4% year over year on a same-store basis, with digital subscription revenue leading the way at a growth rate of 20% [9][13] - Amplified Digital agency revenue grew 9% year over year, contributing to the overall digital revenue growth [13] - The company executed approximately $40 million in annualized cost reductions in the second quarter, aimed at driving margin improvements [14] Market Data and Key Metrics Changes - Digital subscription revenue has grown 40% annually over the last three years, significantly outpacing the nearest industry competitor [8] - The company’s digital revenue has grown more than 17% annually since fiscal year 2021, translating to comparable annual growth in digital gross margin [12] Company Strategy and Development Direction - The company is committed to a digital transformation strategy, aiming for $450 million in digital revenue by 2028 [7] - The introduction of a suite of AI products is expected to accelerate digital revenue growth, with the first product, AI enablement, aimed at local businesses [10] - The focus remains on replacing print revenue with growing and profitable digital revenue to achieve long-term sustainability [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to drive sustainable growth and deliver long-term value to shareholders despite the challenges faced during the quarter [7] - The updated outlook reflects improved total digital revenue growth trends in the second half of the fiscal year, with expectations for year-over-year growth in adjusted EBITDA [19] Other Important Information - The cyber incident in February caused significant disruption, impacting operations and financial performance, but the company has since fully recovered [6][7] - The company has made considerable progress in paying down debt and remains committed to reducing debt going forward [16] Q&A Session Summary Question: Did the net loss of $12 million in the quarter include the interest deferral? When does the company expect to be free cash flow positive? - The net loss includes expenses associated with debt, even though payments were waived. The company expects to be free cash flow positive in the second half of fiscal year 2025 due to changes in cost structure and digital revenue outlook [22]

Financial Performance - Q2 FY2025 - Total operating revenue reached $137 million, a decrease of 6% year-over-year (YoY), or 5% on a same-store basis[14] - Total digital revenue amounted to $73 million, reflecting a 3% YoY increase[14] - Print revenue totaled $65 million, experiencing a 14% decline[14] - Adjusted EBITDA stood at $8 million[15] Digital Revenue Growth - Digital subscription revenue grew by 20% to $24 million[16] - Amplified Digital® agency revenue increased by 9% to $25 million[16] - Digital advertising revenue decreased by 2% to $44 million[16] - Lee expects the Three Pillar Digital Growth Strategy to drive more than $450 million of digital revenue by 2028[3] Cost Management and Debt Reduction - Total cash costs were $131 million, a 2% YoY decrease[15] - Approximately $40 million of annualized cost reductions were executed in the second quarter of FY25[21] - Debt was reduced by $123 million since refinancing in March 2020, bringing the total to $453 million in Q2 2025 from $576 million in Q2 2020[23, 25] Future Outlook - The company anticipates low-single-digit YoY growth in total digital revenue for the second half of FY25[26] - The company anticipates low-single-digit YoY growth in Adjusted EBITDA for the second half of FY25[26]

Core Insights - Lee Enterprises reported a total operating revenue of $137 million for the second quarter of fiscal 2025, with digital revenue accounting for 53% of this total at $73 million, reflecting a 3% increase year-over-year [2][9] - Digital-only subscription revenue grew by 20% year-over-year, reaching $24 million, with a total of 728,000 digital-only subscribers [2][9] - The company faced challenges due to a cyber security incident in February, incurring $2 million in restoration costs and impacting advertising revenue [4][9] Financial Performance - Total operating revenue was $137 million, down from $146.55 million in the same quarter last year [9][16] - Operating expenses totaled $143 million, which included $2 million related to cyber restoration costs, marking a 6% decrease compared to the prior year [9][16] - The net loss for the quarter was $12 million, with an Adjusted EBITDA of $8 million [9][18] Digital Transformation - Digital subscription revenue increased by 20% on a same-store basis, indicating strong growth in the digital segment [3][9] - Amplified Digital Agency revenue reached $25 million, up 9% year-over-year, showcasing the effectiveness of the company's digital marketing services [2][3] - The company launched an AI solution aimed at supporting local businesses in adapting to the evolving advertising landscape [5] Cost Management - Lee Enterprises executed $40 million in annualized cost reductions during the second quarter to address near-term challenges [6] - The company anticipates improving year-over-year trends in Total Digital Revenue for the third and fourth fiscal quarters of FY25 [6] Debt and Cash Flow - The company has $453 million in outstanding debt under a favorable credit agreement with BH Finance, which includes a fixed annual interest rate of 9.0% [8][14] - Cash on the balance sheet totaled $5 million, with debt net of cash amounting to $448 million [14]

Financial Data and Key Metrics Changes - The company reported a strong start to the year with a 22% year-over-year growth in Adjusted Operating Profit (AOP) and an expansion of AOP margin by approximately 180 basis points [14] - Free cash flow generated in Q1 was approximately $90 million, including a one-time benefit of $33 million from the sale of excess land [14][15] - Adjusted diluted EPS increased by $0.10 to $0.41, driven by higher operating profit and interest income [19] Business Line Data and Key Metrics Changes - The company added 250,000 net new digital subscribers, surpassing 11 million digital-only subscribers, bringing the total subscriber base to 11.7 million [6][13] - Digital subscription revenue, the largest and fastest-growing revenue stream, increased by more than 14% to $335 million [7][17] - Digital advertising revenue grew by 12%, marking the strongest growth rate in three years, with total advertising revenues increasing by approximately 4% to $108 million [8][18] Market Data and Key Metrics Changes - The company reported that bundle and multi-product subscribers now make up approximately 49% of the total subscriber base, indicating a shift towards bundled offerings [13] - Engagement levels remained high, with 50 to 100 million people turning to the company's offerings each week [5] Company Strategy and Development Direction - The company aims to continue comprehensive coverage of important stories, innovate in video and audio, and enhance product value through new content and features [10][11][12] - The strategy focuses on leveraging multiple complementary revenue lines, including subscriptions, advertising, affiliate, and licensing, which are all experiencing healthy growth [5][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth drivers and the ability to navigate an uncertain market environment, citing strong audience engagement and a robust balance sheet [20] - The impact of tariffs on the business has been described as immaterial to date, with expectations for healthy revenue growth and margin expansion for the full year [20] Other Important Information - The company won four Pulitzer Prizes, highlighting its commitment to high-quality journalism [10] - The company is focused on maintaining disciplined cost growth while investing in journalism and product enhancements [9][20] Q&A Session Summary Question: Strength in digital ad revenue - Management noted that the ad business is now viewed similarly to the consumer business, with engaged audiences and a suite of high-performing ad products [25][26] Question: News-only subscriber base stability - Management confirmed that the strategy is working as designed, with expectations for continued marketing of the bundle and gradual conversion of legacy subscribers [30][32] Question: Subscriber dynamics and ARPU - Management indicated that total digital-only ARPU grew by 3.6% to $9.54, with confidence in the trajectory due to strong engagement and value addition [16][37] Question: Tactics for managing promotional pricing - Management explained that they monitor engagement closely and adjust pricing strategies accordingly, including potential intermediate pricing for subscribers transitioning from promotional rates [46][48] Question: Digital ad revenue growth - Management expressed optimism about the ad business, highlighting strong performance across various categories and the ability to target engaged audiences effectively [51]

Financial Data and Key Metrics Changes - The company reported a strong start to the year with a 22% year-over-year growth in Adjusted Operating Profit (AOP) and an expansion of AOP margin by approximately 180 basis points [14] - Free cash flow generated in Q1 was approximately $90 million, including a one-time benefit of $33 million from the sale of excess land [14] - Adjusted diluted EPS increased by $0.10 to $0.41, driven by higher operating profit and interest income [18] Business Line Data and Key Metrics Changes - The company added 250,000 net new digital subscribers, surpassing 11 million digital-only subscribers, bringing the total subscriber base to 11.7 million [6][13] - Digital subscription revenue, the largest and fastest-growing revenue stream, increased by more than 14% to $335 million [7][16] - Digital advertising revenue grew by 12%, marking the strongest growth rate in three years, with total advertising revenues increasing by approximately 4% to $108 million [8][17] Market Data and Key Metrics Changes - The company reported that bundle and multi-product subscribers now make up approximately 49% of the total subscriber base, indicating a shift towards bundled offerings [13] - Licensing and affiliate revenues also saw strong growth, contributing to sustainable revenue streams [9] Company Strategy and Development Direction - The company is focused on comprehensive news coverage, innovation in video and audio, and enhancing product value through new content and features [10][11] - The strategy includes leveraging a diverse portfolio of revenue lines, including subscriptions, advertising, affiliate, and licensing, which are all growing at healthy rates [5][9] - The company aims to continue building a larger and more profitable organization while maintaining a disciplined approach to cost growth [9][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth drivers and the ability to navigate an uncertain market environment, citing strong audience engagement and a robust product portfolio [12][19] - The impact of tariffs on the business has been described as immaterial to date, with expectations for healthy growth in revenues and AOP for the full year [19] Other Important Information - The company won four Pulitzer Prizes, highlighting its commitment to high-quality journalism [10] - Engagement with video and audio content has more than doubled, indicating a successful strategy in making reporting more accessible [11] Q&A Session Summary Question: Strength in digital ad revenue - Management noted that the ad business is now viewed similarly to the consumer business, with engaged audiences and a suite of high-performing ad products driving confidence in growth [22][24] Question: Stability of news-only subscriber base - Management confirmed that the strategy is working as designed, with expectations for continued marketing of the bundle and gradual conversion of legacy subscribers [27][28] Question: Subscriber dynamics and ARPU - Management explained that the total digital-only ARPU grew by 3.6% to $9.54, with confidence in the trajectory due to strong engagement and value addition [15][34] Question: Tactics for managing promotional pricing - Management described a sophisticated approach to transitioning subscribers from promotional pricing to full pricing, focusing on engagement signals to determine pricing strategies [42][45] Question: Digital ad revenue performance - Management expressed optimism about the ad business, noting strong performance across various categories and improving targeting capabilities [49][50]

Financial Data and Key Metrics Changes - The company reported a strong start to 2025 with a 22% year-over-year growth in Adjusted Operating Profit (AOP) and an expansion of AOP margin by approximately 180 basis points [12][13] - Free cash flow generated in Q1 was approximately $90 million, including a one-time benefit of $33 million from the sale of excess land [13] - Adjusted diluted EPS increased by $0.10 to $0.41, driven by higher operating profit and interest income [17] Business Line Data and Key Metrics Changes - The company added 250,000 net new digital subscribers, surpassing 11 million digital-only subscribers, bringing the total subscriber base to 11.7 million [6][12] - Digital subscription revenue, the largest and fastest-growing revenue stream, increased by more than 14% to $335 million [15] - Digital advertising revenue grew by 12%, marking the strongest growth rate in three years, with total advertising revenues increasing by approximately 4% to $108 million [7][16] Market Data and Key Metrics Changes - The company reported that bundle and multi-product subscribers now make up approximately 49% of the total subscriber base, indicating a shift towards bundled offerings [12] - Engagement levels remained high, with 50 to 100 million people turning to the company's offerings weekly [5] Company Strategy and Development Direction - The company aims to continue comprehensive coverage of important stories, innovate in video and audio, and enhance product value through new content and features [8][10] - The strategy focuses on leveraging multiple complementary revenue lines, including subscriptions, advertising, affiliate, and licensing, which are all experiencing healthy growth [5][7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term growth drivers and the ability to navigate an uncertain market environment, emphasizing the resilience of the business model [11][18] - The impact of tariffs on the business has been described as immaterial to date, with expectations for healthy growth in revenues and AOP for the full year [18] Other Important Information - The company won four Pulitzer Prizes, highlighting its commitment to high-quality journalism [9] - The company is focused on maintaining disciplined cost growth while investing in journalism and product enhancements [8][13] Q&A Session Summary Question: Strength in digital ad revenue - Management noted that the ad business is now viewed similarly to the consumer business, with engaged audiences and a suite of high-performing ad products [20][21] Question: News-only subscriber base stability - Management confirmed that the strategy is working as designed, with expectations for continued marketing of the bundle and gradual conversion of legacy subscribers [25][26] Question: Subscriber dynamics and ARPU - Management highlighted the year-over-year increase in total digital-only ARPU and expressed confidence in the trajectory due to strong engagement and value addition [31][33] Question: Tactics for transitioning from promotional pricing - Management explained that they monitor engagement closely and adjust pricing strategies accordingly, including intermediate pricing options [41][44] Question: Digital ad revenue performance - Management expressed optimism about the ad business, noting strong performance across various categories and improving audience targeting capabilities [48][49]

Financial Performance - Total revenues increased by 7.1% year-over-year, reaching $636 million in Q1 2025 compared to $594 million in Q1 2024[12] - Adjusted operating profit (AOP) grew by 21.9% year-over-year to approximately $93 million in Q1 2025, up from $76 million in Q1 2024[9, 12] - AOP margin increased by approximately 180 basis points year-over-year to 14.6% in Q1 2025[9] - Adjusted diluted earnings per share increased to $0.41 in Q1 2025, compared to $0.31 in Q1 2024, a 32.3% increase[12, 59] - Adjusted operating costs (AOC) grew by 4.9% year-over-year, primarily due to higher cost of revenue, product development, and adjusted general and administrative expenses[9, 40] Subscriber Growth - The company added approximately 250K net digital-only subscribers in Q1 2025, bringing the total subscriber count to 11.66 million[9, 14] - Bundle and multiproduct subscribers now constitute 49% of the company's total subscriber base, an increase from 48% in Q4 2024[9] Revenue Streams - Digital-only subscription revenues increased by 14.4% year-over-year due to growth in both digital subscribers and total digital-only ARPU[9, 28] - Total digital-only average revenue per user (ARPU) increased by 3.6% year-over-year to $9.54[9] - Digital advertising revenues increased by 12.4% year-over-year, driven by strong marketer demand and new advertising supply[9, 35]

Group 1: Earnings Report Overview - News Corporation (NWSA) is set to report its third-quarter fiscal 2025 results on May 8, with revenue estimates at $2.01 billion, reflecting a decline of 16.84% year-over-year [1] - The consensus estimate for earnings per share is steady at 19 cents, indicating a year-over-year growth of 72.73% [1][2] Group 2: Performance Insights - The company has beaten the Zacks Consensus Estimate in three of the last four quarters, with an average surprise of 13.65% [2] - Following a strong fiscal second-quarter performance, the upcoming quarter presents mixed indicators, suggesting a cautious approach for investors [3] Group 3: Segment Analysis - Digital Real Estate Services showed growth in Australian residential listings, while the U.S. housing market faces challenges due to high mortgage rates affecting transaction volumes [4] - The Dow Jones segment is experiencing promising subscription trends, with management expecting growth acceleration in the second half, although increased B2B investments may pressure margins [5] - News Media is navigating uncertainties in the advertising market, with management anticipating more challenging conditions in the latter half of the fiscal year [6] Group 4: Strategic Developments - The pending sale of Foxtel to DAZN could strengthen the balance sheet, but regulatory approvals may delay completion [7] - Ongoing investments in AI initiatives and related legal expenses are expected to impact profitability as the company balances opportunities and intellectual property protection [7] Group 5: Earnings ESP and Ranking - News Corporation currently has an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold), indicating lower odds of an earnings beat [8]

Core Insights - Wall Street analysts expect New York Times Co. (NYT) to report quarterly earnings of $0.35 per share, reflecting a year-over-year increase of 12.9% [1] - Revenue projections stand at $635.14 million, indicating a 6.9% increase from the previous year [1] Earnings Estimates - The consensus EPS estimate has remained unchanged over the past 30 days, indicating analysts' reassessment of their projections [1][2] Revenue Projections - Digital-only subscription revenues are forecasted to reach $338.94 million, a year-over-year increase of 15.7% [4] - Total digital advertising revenues are expected to be $68.76 million, reflecting a 9.1% increase [4] - Print advertising revenues are projected at $35.24 million, showing a decline of 13.4% from the prior year [4] - Other revenues are estimated at $64.58 million, indicating a 5.3% increase [5] - Print subscription revenues are expected to be $127.62 million, down 6.2% year-over-year [5] - Total advertising revenue is projected at $104.00 million, suggesting a slight increase of 0.3% [5] Subscription Metrics - Subscription revenues are estimated at $466.56 million, reflecting an 8.8% increase from the previous year [6] - Total digital-only subscriptions are projected to reach 11,061, up from 9,910 in the same quarter last year [6] - Print subscriptions are expected to decline to 590, down from 640 in the same quarter last year [7] - Total digital-only ARPU is projected at $9.66, compared to $9.21 a year ago [7] - Total subscriptions for both digital and print are expected to reach 11,651, up from 10,550 in the previous year [7] Market Performance - Over the past month, New York Times shares have returned +14%, outperforming the Zacks S&P 500 composite's +11.5% [8] - The company holds a Zacks Rank 3 (Hold), suggesting performance alignment with the overall market in the near term [8]

Core Viewpoint - The New York Times Company (NYT) is expected to report a 6.9% increase in first-quarter 2025 revenues, driven by subscription growth and advertising trends [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for first-quarter revenues is $635.1 million, reflecting a 6.9% rise from the previous year [1]. - The consensus estimate for earnings per share (EPS) is 35 cents, indicating a 12.9% increase year-over-year [2]. Subscription Growth - NYT's focus on subscription growth and digital innovation has been crucial, with total subscription revenues projected to increase by 7-10% year-over-year [4]. - The consensus estimate for subscription revenues is $466.6 million, suggesting an 8.8% growth, while digital-only subscription revenues are expected to reach $338.9 million, indicating a 15.7% increase [4]. Subscriber Base Expansion - The digital-only subscriber count is anticipated to reach 11.1 million by the end of Q1 2025, enhancing NYT's market position for advertisers [5]. Digital Advertising Trends - NYT is reducing reliance on traditional advertising, with digital advertising revenues expected to grow by 9.1%, estimated at $68.8 million [6]. Challenges Faced - Print subscription revenues are projected to decline by 6.2% to $127.6 million, and print advertising revenues are expected to fall by 13.4% to $35.2 million [7]. - Increased spending on product development and marketing may impact margins, with adjusted operating costs expected to rise by 5-6% [7]. Earnings Prediction Model - The Zacks model does not predict an earnings beat for NYT, as it holds a Zacks Rank 3 and an Earnings ESP of 0.00% [8].