The New York Times (NYT): Buy, Sell, or Hold Post Q4 Earnings?

Ladies and gentlemen, buckle up! We're diving headfirst into the earnings report of The New York Times Company, and let me tell you, the numbers are screaming BUY! The New York Times just reported a 7.5% increase in fourth-quarter revenue, hitting $726.6 million. That's right, folks! The Times added 350,000 digital-only subscribers in the last quarter, pushing the total subscriber count to over 11.4 million. This is a game-changer!



The digital revolution is here, and The New York Times is leading the charge! Digital-only subscription revenue grew by 16% year over year to $334.9 million. This is not just growth; this is EXPLOSIVE growth! The company's adjusted operating profit increased by 10.7% to $170.5 million, showing that they are not just growing but doing it profitably. The CEO, Meredith Kopit Levien, said it best: "This momentum gives us confidence that we can deliver another year of healthy growth in subscribers, revenue, and profitability, as well as strong free cash flow."

But let's not ignore the elephant in the room. Print advertising revenue declined by 16.4%, and print subscribers fell to 610,000. This is a trend we've seen for years, and it's not going away anytime soon. The market is shifting, and The New York Times is adapting. They are investing in digital advertising, which grew by 9.5% year over year. This is a company that understands the future and is positioning itself to dominate it.



Now, let's talk about the elephant in the room. The company spent $10.8 million on litigation costs relating to a copyright infringement lawsuit against OpenAI and Microsoft. This is a significant expense, but it's a necessary one. The New York Times is protecting its intellectual property, and that's a good thing for investors. The company had $911.9 million in cash and marketable securities at the end of 2024, up from $709.2 million at the end of 2023. This shows that they have the financial muscle to weather any storm.

The board approved a new $350 million class A share repurchase program and announced a quarterly dividend of 18 cents a share, up 5 cents from the previous quarter. This is a company that is not just growing but also rewarding its shareholders. The New York Times is expecting digital-only subscription revenue to increase up to 17% from a year ago, with digital advertising revenue rising in the high single digits. This is a company that is not just surviving but thriving in the digital age.

So, what's the verdict? BUY, BUY, BUY! The New York Times is a company on the move, and you don't want to miss out on this opportunity. The digital transformation is here, and The New York Times is leading the charge. This is a company that is not just growing but doing it profitably. This is a company that is not just surviving but thriving in the digital age. This is a company that is rewarding its shareholders. This is a company that you need to own!