August 6, 2025 Forward-Looking Statements Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Terms such as "aim," "anticipate," "believe," "confidence," "contemplate," "continue," "conviction," "could," "drive," "estimate," "expect," "forecast," "future," "goal," "guidance," "intend," " ...

Core Insights - The number of digital subscriptions for AS Ekspress Grupp increased by 10% year-over-year, totaling 244,884 by the end of June [1][2] - The growth in digital subscriptions in Latvia and Lithuania was particularly strong, with increases of 23% and 11% respectively [3] - The company aims to reach a long-term goal of 340,000 digital subscribers in the Baltic States by the end of 2026 [5][8] Digital Subscription Performance - AS Delfi Meedia's digital subscriptions rose by 12% year-over-year, reaching 119,811 [7] - AS Õhtuleht Kirjastus saw a decrease of 10% year-over-year in digital subscriptions, totaling 24,460, although it experienced a 2% increase in the last quarter [4][7] - Geenius Meedia OÜ's digital subscriptions decreased by 1% year-over-year, totaling 7,388 [7] - In Latvia, Delfi A/S's digital subscriptions increased by 23% year-over-year, totaling 33,840 [7] - In Lithuania, Delfi's digital subscriptions increased by 11%, totaling 47,758, while Lrytas UAB's subscriptions increased by 13%, totaling 11,627 [7] Market Outlook - The Baltic digital subscriptions market has significant growth potential, especially in Latvia and Lithuania [5] - The company is focused on increasing digital subscribers across all markets, indicating a positive growth trend [4][5]

Core Insights - The New York Times Company (NYT) has positioned digital subscriptions as a central element of its growth strategy, focusing on high-quality journalism and personalized content to expand its subscriber base [1][2][6] - The company has diversified its digital offerings beyond news, including cooking, games, and lifestyle features, which contribute to its subscription growth [1][2] Subscriber Growth - As of the end of Q1 2025, NYT had approximately 11.66 million subscribers, with 11.06 million being digital-only subscribers, marking a net addition of 250,000 digital-only subscribers from the previous quarter [3] - The company reported that 5.76 million of its digital-only subscribers were bundle and multi-product subscribers [3] Revenue Performance - Subscription revenues reached $464.3 million in Q1 2025, reflecting an 8.2% year-over-year increase, while digital-only subscription revenues surged by 14.4% to $335 million [4] - The average revenue per user (ARPU) for digital-only subscribers increased to $9.54 from $9.21 year-over-year, driven by subscribers moving to higher rate plans and price increases for long-term non-bundle subscribers [5] Future Outlook - Management anticipates continued growth in subscriptions, projecting total subscription revenue growth of 8-10% and digital-only subscription revenue growth of 13-16% for Q2 2025 [6] - The strategic focus on building a loyal subscriber base has reduced the company's reliance on volatile advertising revenues [6] Market Positioning - NYT's emphasis on subscription growth and digital innovation has been a key factor in its success within a competitive media landscape, showcasing its ability to attract new subscribers and optimize ARPU [7] - Despite the positive trends, the company faces challenges with a decline in print advertising revenues, which fell by 8.5% in Q1 2025 [7] - Over the past three months, NYT shares have increased by 15.7%, outperforming the industry growth of 14.8% [8]

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]

Core Insights - The total number of digital subscriptions for AS Ekspress Grupp increased by 12% year-over-year, reaching 236,272 by the end of March [1][2][5] Digital Subscription Growth - The most significant year-on-year growth in digital subscriptions was observed in Latvia (30%) and Lithuania (17%), while Estonia experienced a slight decline in the first quarter due to the expiration of some business contracts [3][6] - The company aims to expand its digital subscriber base, particularly in Latvia and Lithuania, with a long-term goal of reaching 340,000 subscribers in the Baltic countries by the end of 2026 [4][5] Detailed Subscription Overview - As of March 31, 2025, the digital subscriptions for various segments are as follows: - Delfi Meedia AS: 112,751 subscriptions (10% increase year-over-year) - AS Õhtuleht Kirjastus: 24,009 subscriptions (9% decrease year-over-year) - Geenius Meedia OÜ: 7,219 subscriptions (5% decrease year-over-year) - Delfi AS (Latvia): 32,918 subscriptions (30% increase year-over-year) - Delfi UAB (Lithuania): 47,341 subscriptions (17% increase year-over-year) - Lrytas UAB (Lithuania): 12,034 subscriptions (38% increase year-over-year) [4][6] Revenue Insights - Digital subscription revenue is becoming a larger portion of Ekspress Grupp's overall digital revenue, aligning with the company's long-term goals established in early 2022 [5]