Summary of New York Times (NYT) 2025 Conference Call Company Overview - **Company**: The New York Times (NYT) - **Date**: September 04, 2025 - **Speaker**: Will Bardeen, CFO Key Points Digital Transformation Strategy - The New York Times has undergone a significant digital transformation since 2010, evolving from a traditional newspaper to a global digital subscription leader [7][8] - The strategy is termed the "essential subscription strategy," which aims to be an essential part of daily life for consumers [8] - The strategy consists of three pillars: 1. Being the best news destination globally 2. Offering leading lifestyle products (sports, games, cooking, shopping advice) 3. Integrating these products into a cohesive bundle [8] Financial Performance - Digital subscription revenue grew by 14% year-over-year, with AOP (Adjusted Operating Profit) growth of 17% [9] - As of the last quarter, the company reported 11.9 million total subscribers, with a target of reaching 15 million by 2027 [26][24] - The company has a total addressable market (TAM) of over 150 million registered users, with 50 to 100 million users visiting weekly [25][26] Revenue Streams - The New York Times has diversified its revenue streams, including digital subscriptions, advertising, affiliate, and licensing revenues, all of which have high incremental margins [15][16] - The advertising segment saw nearly 20% growth in the last quarter, attributed to an increase in engaged consumers and effective targeting using first-party data [43][45] AI and Technology Integration - The company is leveraging AI for various applications, including dynamic paywalls, personalized content recommendations, and enhanced ad targeting capabilities [28][51] - AI is seen as a critical component for driving engagement and conversion rates [28][42] Marketing Strategy - The marketing spend is approximately 5% of revenues, focusing on returns-driven paid media and brand marketing [58][60] - The company emphasizes organic growth through product-driven strategies rather than relying solely on marketing [68] Print Business Outlook - The print business is in secular decline, but it remains profitable and valuable for the company [74][76] - The New York Times continues to manage the print segment for its value while focusing on digital growth [76] Cash Allocation and M&A Strategy - The company aims to return at least 50% of free cash flow to shareholders while maintaining a strong balance sheet for potential M&A opportunities [78][80] - M&A activities will be strategically aligned with the essential subscription strategy and focus on high returns [83][84] Conclusion - The New York Times is confident in its growth trajectory, driven by a robust digital strategy, diversified revenue streams, and effective use of technology and marketing [16][50][88]