THE NEW YORK TIMES COMPANY
SEGMENT INFORMATION
(Dollars in thousands)
Since the acquisition of The Athletic in the first quarter of 2022, we have had two reportable segments: NYTG and The Athletic.
Management uses adjusted operating profit (loss) by segment in assessing performance and allocating resources. The Company
includes in its presentation revenues and adjusted operating costs to arrive at adjusted operating profit (loss) by segment.
Adjusted operating costs are defined as operating costs before depreciation and amortization, severance, multiemployer pension
plan withdrawal costs and special items. Adjusted operating profit is defined as operating profit before depreciation and
amortization, severance, multiemployer pension plan withdrawal costs and special items. Adjusted operating profit expressed as
a percentage of revenues is referred to as adjusted operating profit margin.
Subscription revenues from and expenses associated with our bundle are allocated to NYTG and The Athletic. The Athletic was
first introduced into our bundle in June 2022. Therefore, The Athletic’s results for the second quarter of 2022 include bundle
revenues and expenses for only part of the quarter, whereas the second quarter of 2023 included bundle revenues and expenses
for the entire quarter.
Prior to April 1, 2023, we allocated bundle revenues first to our digital news product based on its standalone list price and then
the remaining bundle revenues were allocated to the other products in the bundle, including The Athletic, based on their relative
standalone list prices. Starting April 1, 2023, we allocate 10% of bundle revenues to The Athletic based on management’s view
of The Athletic’s relative value to the bundle, which is derived based on analysis of various metrics.
Prior to April 1, 2023, we allocated to NYTG and The Athletic direct variable expenses associated with the bundle, which
include credit card fees, third party fees and sales taxes, based on a historical actual percentage of these costs to bundle revenues.
Starting April 1, 2023, we allocate 10% of product development, marketing and subscriber servicing expenses (including the
direct variable expenses referenced above) associated with the bundle to The Athletic, and the remaining costs are allocated to
NYTG, in each case, in line with the revenues allocations.
For comparison purposes, the Company previously recast segment results for the quarters following the second quarter of 2022
to reflect the updated allocation methodology. The second quarter of 2022 was not recast as the change was de minimis for that
quarter in light of the timing of the introduction of The Athletic to the bundle.
The results of The Athletic have been included in our Condensed Consolidated Financial Statements beginning February 1,
2022, the date of the acquisition. Results for the twelve months 2022 included The Athletic for approximately eleven months
while results for the twelve months 2023 included the Athletic for the full twelve months.
Fourth Quarter Twelve Months
2023 2022
(1)(2)
% Change
2023
2022
(1)(2)
% Change
Revenues
NYTG $ 638,358 $ 638,213 * $ 2,295,537 $ 2,223,676 3.2 %
The Athletic 38,513 29,323 31.3 % 131,271 84,645 55.1 %
Intersegment eliminations
(3)
(656) — * (656) — *
Total revenues $ 676,215 $ 667,536 1.3 % $ 2,426,152 $ 2,308,321 5.1 %
Adjusted operating costs
NYTG $ 479,985 $ 486,737 (1.4) % $ 1,874,256 $ 1,834,627 2.2 %
The Athletic 42,930 38,967 10.2 % 162,701 125,763 29.4 %
Intersegment eliminations
(3)
(656) — * (656) — *
Total adjusted operating costs $ 522,259 $ 525,704 (0.7) % $ 2,036,301 $ 1,960,390 3.9 %
Adjusted operating profit
(loss)
NYTG $ 158,373 $ 151,476 4.6 % $ 421,281 $ 389,049 8.3 %
The Athletic (4,417) (9,644) (54.2) % (31,430) (41,118) (23.6) %
Total adjusted operating
profit $ 153,956 $ 141,832 8.5 % $ 389,851 $ 347,931 12.0 %
AOP margin % - NYTG 24.8 % 23.7 % 110 bps 18.4 % 17.5 % 90 bps
(1)
Recast to reflect updated bundle allocation methodology.
(2)
Recast to conform to the current presentation of total operating costs. See “Comparisons” for more details.
(3)
Intersegment eliminations (“I/E”) related to content licensing.
* Represents a change equal to or in excess of 100% or not meaningful.
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