The New York Times Announces Quarterly Dividend of $0.13
On September 27, 2024, The New York Times Company (NYSE: NYT) announced a quarterly dividend of $0.13 per share. The dividend will be paid on October 24, 2024, to shareholders of record as of the close of business on October 9, 2024, with an ex-dividend date of October 9. This announcement keeps the dividend amount consistent with previous quarters, leading to a forward yield of 0.94%.
Stable Dividend Policy
The New York Times has demonstrated continuity in its dividend policy, regularly distributing $0.13 per share each quarter. This amounts to an annual dividend of $0.52 per share. Over the past five years, the average dividend yield has been 0.76%, indicating a modest yet reliable payout. The current payout ratio stands at 28.4%, signaling that the company reinvests a significant portion of its profits to fuel further growth.
Financial Highlights
For the second quarter of 2024, The New York Times reported solid financial performance. Total revenue rose 5.8% to $625.1 million, compared to $590.9 million in the same quarter last year. The primary growth driver was the digital subscription segment, which increased 12.9% to $304.5 million. This growth was fueled by a rising number of digital subscribers and price increases for existing subscriptions.
The New York Times added 300,000 new digital subscribers in the second quarter, bringing the total to 10.21 million. The average revenue per digital user (ARPU) increased by 2.1% to $9.34.
Operating Performance and Profit
The company’s operating profit grew by 42.4% to $79.4 million in the second quarter, driven primarily by higher digital subscription and advertising revenues. This represents an operating margin of 12.7%, a notable improvement from 9.4% in Q2 2023.
Digital advertising revenue also increased by 7.8% to $79.6 million, largely due to higher display ad revenues at both The New York Times brand and its subsidiary, The Athletic. In contrast, print advertising revenue declined by 10.0% to $39.6 million.
Cost Structure and Profitability
Despite rising revenues, The New York Times managed to keep its operating costs under control. Total costs increased by just 2.0% to $545.7 million, while adjusted operating costs rose by 4.4% to $520.4 million. Notably, product development costs increased by 11.0%, amounting to $62.2 million, reflecting the company’s investments in technology and the development of new digital products.
Strong Liquidity and Balance Sheet
As of June 30, 2024, the company held $724 million in cash and marketable securities, up $14.8 million since the start of the year. This liquidity provides The New York Times with ample room for future investments and potential acquisitions. Additionally, during the second quarter, the company repurchased 208,083 shares for a total price of $9.5 million, demonstrating a commitment to returning capital to shareholders.
Market Valuation and Outlook
The New York Times currently has a market capitalization of $9.09 billion, with a price-to-earnings ratio (P/E) of 34.15 based on trailing twelve months. The forward P/E is estimated at 27.10, reflecting optimistic earnings expectations for the future. This underscores investor confidence in the company’s long-term growth potential, particularly in the digital segment.
Looking ahead to the third quarter of 2024, The New York Times expects continued growth in digital subscriptions and advertising revenue. Digital subscription revenue is projected to increase by 12-15%, while digital ad revenue is expected to grow in the high single digits.
Conclusion
The New York Times continues to strengthen its position as a leading digital media company. The consistent increase in digital subscribers, combined with a solid ARPU and stable dividends, makes the stock an attractive option for long-term investors. With a strong balance sheet and efficient cost structure, the company is well-positioned for future growth initiatives.
The New York Times Company
The New York Times Company (NYSE: NYT) is a globally recognized media organization dedicated to delivering high-quality, independent journalism. With over 10 million subscribers across a diverse range of digital and print products—including news, cooking, games, and sports—the company has evolved from a regional newspaper into a leading digital content provider. The New York Times is known for its in-depth reporting and commitment to truth, aiming to help people understand and engage with the world. Founded in 1851, the company continues to innovate in the media landscape, offering its content to a global audience.
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Quelle: investor relations, sec, finance yahoo, bloomberg u.a.