The New York Times Company Q2 FY2025 earnings call

• Subscriber Growth: Added 230,000 net new digital subscribers, total subscriber base at ~11.9 million, and over 50% of subscribers are on the bundle or multiple products. - Video Expansion: Scaling video across categories, producing more news videos, full-length shows, and using video to enhance lifestyle products. - Advertising Success: Strong quarter with digital advertising up nearly 19% and total advertising up over 12% due to large engaged audience and high-performing ad products. - Amazon Licensing Deal: Consistent with long-held principles, provides fair value exchange, control over content use, and aligns with long-term strategy of being more essential to more people. - Cost Discipline: Maintained cost discipline while strategically investing in journalism and product experiences.

Subscription Business: Added approximately 230,000 net new digital subscribers in the quarter, bringing total subscriber base to approximately 11.9 million. Digital subscription revenue increased by over 15% in the quarter, reaching $350 million. Total subscription revenues grew approximately 10% to $481 million. Advertising: Digital advertising revenues increased nearly 19% to $94 million, and total advertising revenues grew more than 12% to $134 million. Affiliate, Licensing and Other Revenues: Grew approximately 6% in the quarter to $70 million, with licensing and Wirecutter affiliate revenues performing well. Revenue contribution percentages are not explicitly stated in absolute terms but each segment contributed to overall growth.

• Third quarter digital-only subscription revenues expected to increase 13% to 16%, total subscription revenues expected to increase 8% to 10%. - Digital advertising revenues expected to increase low double digits, total advertising revenues expected to increase low to mid-single digits. - Affiliate, licensing and other revenues expected to increase high single digits. - Adjusted operating costs expected to increase 5% to 6%. - Expect to have only 1 reportable segment as of next quarter. - Continue to expect healthy growth in revenues, AOP, margin expansion, and strong free cash flow generation for the full year.

• Market uncertainties that could impact revenue growth. - Competition from big tech companies leading to less traffic for publishers. - Potential issues related to content licensing and control over how intellectual property is used, though the Amazon deal is structured with guardrails to address some of these concerns.

Q: On advertising, what are the key factors driving the acceleration and tech enhancements?

A: Big spaces with broad marketer appeal, large engaged audience with first-party data, new ad products, and rolling out new app supply.

Q: On the Amazon licensing deal, what's appealing and about guardrails?

A: Consistent with long-held principles, fair value exchange, control over content use, and aligns with long-term strategy.

Q: Timing for 15 million subs?

A: Aim is 15 million by 2027, with persistent demand and focus on making products more accessible/valuable.

Q: Progress with bundle strategy and family plan?

A: 50% of subs on bundle, bundled subs engage more; family plan is in early stages.

Q: Traffic headwinds and direct organic traffic?

A: Tech companies causing traffic issues, direct organic traffic is people seeking The Times by name, reflecting a daily habit.

Q: AI licensing opportunities and financial impact?

A: Open to right deals, Amazon deal is first of potential more, affiliate licensing revenue expected to grow with Amazon deal playing a role