The New York Times Company (NYT) 9 Aug 182018 Q2 Earnings call transcript

Good morning, and welcome to The New York Times Company's Second Quarter 2018 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Harlan Toplitzky, Executive Director of Investor Relations, and Financial Planning and Analysis. ahead. go Please

welcome quarter and New Times York Thank earnings to conference second XXXX call. Company's you The

On the President call Chief today, Officer. Executive we have Mark Chief and Meredith Officer; Roland Financial Levien, Vice Operating President Executive Thompson, Kopit Executive Chief Vice and and Caputo, Officer; President and

Before could course that call, of will we and like differ forward-looking make our you I remind would results materially. this statements begin, actual to management during the

are that Some our included of business and impact in uncertainties XX-K. could the XXXX our risks

In have to presentation With earnings investors.nytco.com. on will Thompson. Mark measures most and addition, available include our at over our non-GAAP provided comparable that, measures, I financial press in the is website we release, will which reconciliations turn to our call GAAP the

for operating We solid QX revenue grew another GAAP quarter. Thanks, Harlan. profit was the the company. in quarter and

adjusted of ramp in fell measure up own on around we particular. higher spending our operating funnel marketing X% as profit So, by

air a deal Daily, we itself and During Hulu. audiences, journalism The new phenomenally core our podcast, the The our FX central quarter, popular The Daily create Like news revenue by the we generate It to of our news to work, XXXX. and hope that complement to and new distributed show, and substantial Cooking announced will be Times in Crossword, first and subscription bring including Weekly other growing product, a Weekly, that support engagement it TV to and offering. The a opinion digital joins body pods, will Wirecutter, and

subscriptions. higher lower the digital-only added which X.X net X.X in In the typically are a our million recent the much to QX balance but of digital quarters, launch revenue streams of the core than subscriptions, we were to subscriptions still product new Let's model. digital-only. we total The detail, achieved to Cooking XXX,XXX for in with at Of products, products. Crossword core standalone we've were opinion and seen new look digital of the beginning XX,XXX net pay now digital-only million than net adds subscriptions and the news in since QX,

audiences The and net than other second subscription sees generally adds. fewer quarter therefore lower quarters,

a to pay through by So both deepening subscription and and effect our again new them and appointment our with much businesses, intended post-election more made use, that which by subsequently fruit. journey attracting during experience engagements marketing pricing ago, Facebook also new logged both international further, less quarter at a exceptional Robert bear opinion the digital churn and of our model within was news factor more and second number Counsel, the result spend about digital a bump very into concern decision product fell which marketing a Across incentivizing messages. QX churn. and markets audiences churn, in customer Trump A QX Australia We'll has strategy. year in in journalism, progress improved We apparent subscribers and bundling Facebook do XXXX, encouraging. our subscriptions, subscription advertising tactics. categorize efforts in with we're can increase initial coordinated like to moreover and both XXXX where Special pleased international was hope to the Comey remain by to and peaks the specifically the our and UK, firing We're election subscription James on and the abroad, significant because in and year-over-year spending discussions part our events, our that optimizing additional this marketing business digital some with an personalization, Overall inroads the and less on way in in and remains also in Mueller. the Lower especially making QX. amongst quarter. the we quarter of reduce begun strategy of scale Facebook, advertising of with making in We home played performance progress our and cohorts, developing architecture, driving the compelling our confident registered including

a this in departments marketing, part future effect. in editorial quarters. this revenue and does new earnings comp-ing is we back We newsroom initial in revenue declined Our against Print rate teams tech We'll because and progress earlier, together prints QX exceptional not science this a increase and data represent higher working that calls. in trend, that were again, of but report an challenge. a believe, subscription on in recent bump product, year than however, are up at on rather quarter Trump

Now, digital advertising. advertising, earnings we last call, In second I X.X% expected so a expected digital was half at was. the in QX Total advertising we're seeing But call that second be a strong that also And, in in year. it down year-over-year the QX. to rebound the $XX a sequential warned million. and uptick I quarter of early that certainly down in we said

growth data ideas-driven big As the regulations growth quarter. and through on mid-way pleased sold major is quarter, of usage, QX significant rate the brands. for were our currently became number new business signing the partnerships QX our the calls you'll the by and across effective guidance we're also The work hear, with required regulations looking of in company. very new We of particularly for in GDPR, Preparing European XX% year-over-year increasing encouraging. the current directly these

may to as how broadly, relate we digital So far, continue to and they user advertising business. advertising revenue affect our the impact regulation minimal. data the on monitor changing attitudes been has carefully More will

quarter in and a production printing and will with subscription-first meanwhile, now X same deeper and million the operating and monetization. week, digital cases, conclusion, our opinion and remain by across the promises second grow subscription history. result with podcast. The with winning operated increased we're primarily in at hope what TV. engagement The set quarter, College of and marketing Week in commercial costs the to owned pillars time elections additional but liveliest which of side, We of In as Point cost X mid-term Weekly working on audience quality here's details confident than higher younger business cost subscribers departments in company audiences, our history the our pass the Roland adjusted our And more strategy, our gearing year-over-year, U.S. in digital-only on journalism, already We we Times On in new newsroom for But subscribers the many daily investments facility. have subscribers, we're for even associated audiences, to growth soon faster. the cost at modern any up million Caputo. to are are be do total ever

and you, Thank morning, everyone. Mark, good

quarter, in in digital-only in As growing the was operating Mark subscription earnings profit period the represents $X.XX diluted subscription in $XX approximately the with Adjusted to prior reported second the revenues with increased adjusted same XX% per for million progress revenue compared quarter of year. of said, in this $XX $XX the execution continued share profit million. million quarter adjusted X% We quarter, in strategy. compared an quarter XXXX. Total with company's the the flat of operating

June. in less to a the prior during as daily declined in while in revenue due the services continue creative X% compared were expensive the versus due period. growth the advertising down compared XXXX, subscribers by the of when the declined was the to quarter home of comparisons compared driven Total the financial continuing in side, improvement XXXX entertainment as X% digital-only On down the the telecommunications, prior revenue with to reflect slightly declined international which audience basis, and and quarter to with overall moving by the offers ARPU very shift the XX% strengthening to digital technology, both quarter sequential newspaper. and the subscription circulation revenue. second print quarter declined a of declined XX.X% Lower quarter print news XX% delivery decline advertising mainly declines home delivery ARPU number year. luxury to print frequent X.X%, represents category. of we advertising the in in declines lower-priced prior demand second due for strong as XXXX subscription copy offset variance products in monthly X.X%. compared continued in declined delivery Total packages. April, lower in by compared and to advertising declines difficult second U.S. revenue elevated the our May in Quarterly On a Digital year, less of dollar revenues postelection well the the as first and in year, well with circulation smaller the as Sunday compounded a subscriptions were on partially revenue year, These X% of last experienced quarter. to approximately was categories, single advertising

Going quarter second of our by forward, the driven of to in to providing to growth variable commercial Other due the advertising operations printing disclosure we nature XXXX this suite million, the versus monthly intend highly grew $XX monthly revenues principally Newsday products. XX% discontinue from revenue. on

was - to X%, and while additional grew be largely marketing quarter. recommendation to income third the website, excluded of operating related been as operating revenue adjusted costs In income. which make our represents ramp-up was in floors a expense more the This higher partially headquarters we in well in which marketing primarily was to by from as one the driven quarter. quarter, rental related Growth increased item, by nearly from decreased as our in the the Wirecutter. building GAAP commercial million of by adjusted of charge the Newsday to production four higher Adjusted headquarters of result printing ramp-up affiliate The review the rental non-capitalizable end cost the space cost to cost. generate expect recorded also reconfiguration severance operating referral quarter, decrease X% special offset and operating our lower available cost revenue costs. results. of building costs has We other $X to from product complete

the still rental We over of several and on the floors new for them X.X the made reflected quarter. next remaining leases recording quarters. in have execute revenue floors We we available, from reported X have which to expect the begin of were signed the income to in X second we leases

the Our effective quarter XX%. just shy was second for rate of tax

balance to sheet. Moving the

ending Total debt Our headquarters approximately obligations, principally our increased $XXX during and million. balance the building, of sale-leaseback marketable to $XXX lease related capital the cash securities million. quarter, and at were

the adjusted Other the digital are the expected and subscription are compared Let operations. outlook with approximately printing high-teens. third in third marketing expected in of commercial quarter is operations. our increase increase to revenues it quarter printing conclude questions. XXXX, Total the costs with quarter with our to to of in commercial with our are decrease approximately advertising to compared for the up increase costs expected are XX%. for operating low-single-digits to expected third XXXX. due digital-only third the with increase mid-single-digits to growth subscription XX% largely to XXXX, me expected to be increase revenues compared Operating Overall invest revenue quarter we'll continue in up the happy and the and revenues advertising approximately expected open as with in of we of XXXX, ramp And that, XX%, to

session. [Operator begin Jefferies. first come Janedis today now go question ahead. Our question-and-answer of will the will Please John from We Instructions]

you more in is the me. little commercial can versus the to while, be you. a component in the on it gotten you Thank the maybe printing? expect you the on subscriber what detail quarter, And give understanding net-adds the composition meaning Two driver election digital morning. of One do for third a then, Good a marketing of extent to growth of for the expense side, haven't separately, quarter? questions

Okay.

is side, number the expense much expect cost in larger the marketing we increase than On from a costs. increase the commercial printing in

color And, I give can more that. to

of us funnel. see to with experiment to parts all in going the continue marketing You're more aggressively

reading And it virtuous the downloading how consider what we marketing. you'll that And much users, to us think with And the funnel, do return the would at in as and see return. more we top But see gateway, of longer and is, doing so we also you'll driving takes in the are toward the spend the story, registering, middle of how and time. us getting middle more on sophisticated we funnel, over to closer spend. I'll see funnel to getting another things marketing experimenting that So app. work the the the continue better behavior, what get say to are continue we better we we I more characterize more upper

it's the I is in the news think to midterms. On audiences word this second the But and the events. changing point, state year's try real intense already obvious, I to to there world predict foolish interest election, mean,

to opinion snapshot to important and people to Day of But Our it's elections, the head colleagues how in in we're deep amongst be particular, that And that incredibly would most of I typically in November. times. say, in towards see our react vote of kind an of living, departments it. journalist we're to into of unpredictable thinks detailed real-time going newsroom have polling happened. after reflecting and state Historically, political offering here quarter. other to planning, that be the that August, to end the interesting the are the towards we'll It the to polling, audiences. expect and although Labor so September, began country in an set as want this towards the audiences end things happen obvious We every

much. Thank very you

Our from next come J.P. question Alexia Please will go ahead. Morgan. of Quadrani

Thank you.

Mark, year Trump that any bump. year other that give typically a resumed you a see that factor wondering the couple for that there because the the you impacted your sub marketing sub-adds think any growth or I'm should commentary in of may Facebook the normalized thank for to Just then, for said be a of digital that last of aware about we can sort that mass QX. Is a in you year, quarter in you talking other in seasonality of of negative see us you the still quarters more QX, them. commentary was seasonality other color And you sub questions. spend the the progress we bit, will just influence digital the be and growth? on little then on if Facebook

say to the side Meredith. we still Alexia. number take I is in and marketing. is pull about on It's say, business. sort have to in Hi, thing And I'm would levers. this would first think still we of I And question. I just a great levers of the the interesting seasonality happy important what the what I more confidence have in talked

messaging of our You'll see do continue to think and still market room paid marketing. we platform and to better. And a own us in efficiently more I more quite through bit have on differently

in I think we have the in the real levers that coming quarters you'll itself. product see

improve the this model and And relationships bit engagement with based dormant of stories on a think on on to room, know the in their addition what important interest to to people. quarters what I putting and in better a have get model now. itself, work still alluded we direct us expressing quite then people lot how judgment doing XXX at, in in can and them. you'll about publish about this we real day. we're and stories, see So value products Mark of his the unlocking, remarks, I our we allows most stories We call, in the that front right particularly coming would a in scale the

on I Mark work people that So to all more our get the around engage days, and and think more, more alluded come often of content. sorts registration, day during back to log-in, activities

have of a thinking quite as So ahead bit of sort more we we're I about think less us. work seasonality, but that of

think said we're And in we you Facebook. about also we're thinking likely. likely so individual secondly but it we're how future. begin somewhat not over-reliant to I way funnel, not yet, marketing, really, will literally also, not bottom thinking we, making with spend both But I about diversify conversion, as that's marketing become the higher about - is of I beginning the at Facebook you the that we likely the practice, to they think what, more simply is in we're think as that the people think funnel we we deeply, the sure which thinking what engage trying to more so Again, targeting how but gives in the to we points to to right know of channels. that's it's converse also, get on question, Meredith think more about But influence certain said, simply

benefit we years of the And a right. that of half year. introduced more quarter, see three second what marketing we've particular we That's on let's into channel you'll two to more to channels or the really in we're second more number take see actually our we're channels. In that And it beginning started quarter year. say, operation the the marketing to a in make is learned new now, And making a earlier can of the come of And sophisticated. efficient.

of efforts Okay. extent sounds start see do have it sense you [ph] all - you in really of of guess, of kind these the you'll can't you comment, it growth? - and granularity in tail to is impact terms bit work of or are think you in has I'll some terms of just these a the a of QX in process. like the long that have subs visibility I QX should the sub on a bit on see the anomaly in softness, QX can to just digital

Roland our I say I provided general answer guidance. would that has already to think that's that.

just ability next product that some we're our digital to pretty about described, and levers now in model to the the particularly And, we fundamental are optimistic more the I've incredibly the on still acceleration. working are of getting We scale subscriptions. confident that provide

very Okay. much. Thank you

Arthur will question Please Doug ahead. of from Huber next Research. go come Our

thanks. little to better. cost understand trying just this Roland, a bit Yeah, ramp

Yeah.

tariffs assume SG&A. havoc there. of year-over-year will QX of seasonally newsprint whatever, bit I But, down causing the a be the and little QX. bulk cost are bit because the quite year, I here that sequentially, issue would SG&A a Is last from in the your SG&A in part was or comp, the increase know QX of -

SG&A of QX there. marketing kind your this of be this at flat ran with XX%, on up year, you'll sort with you right If of QX, spend an adjusted plan basis XX%,

of part is issue? it a So year-over-year comp

Yeah, that's up, discussed. good. that just marketing as And explanation really Mark we as Meredith major here and is the ramp

X% and expenses. once total newsprint far transformation it that a the really matter the not is given of it's less of fact, the item the significant expense as company newsprint than of our A As was. tariffs,

So again, on not marketing would the expense what side focus in I we're and on would on I focus doing on - necessarily the newsprint.

Yeah, is no. Newsday, of And no, this you? costs? this make No, business exactly, money for with is exactly. sort revenues of and new going that of like Or to lots just lots

doing what That's Doug. we're here,

It's very margin, ramp-up. like we're healthy. of not the it's media already in for us. making margins. the We It's middle but money the a at And

components transitioned three this, something So to to Newsday very there's and called York product products of lucrative they a we've three we're now in transitioning XXX% AM produce shopper. home New AM the for transport. is the which and shopper, And midst home the and Newsday, us New and publish, York, of

revenue really our a it's to it's expense improve. play play, if not that, now is and happy and it that - and will with expectations So margin are not here. a really we're This date,

for Thanks. off drop a I'll Great. Okay. sec.

Please come will from Venkateshwar Our of ahead. next go question Kannan Barclays.

you. Thank

seems Just question you're channels impact. Meredith, an to various had marketing for you and on looking Facebook not one at me. mentioned have marketing

these And placed? understand of driving how important of go ahead. to via specifically so subscriptions wanted in in just also how website on? - each you Facebook are driving secondly and is terms the I of priorities important channels traffic And and So terms

Yeah.

Sorry. want answer me to that? Do you

tell… yes, Yes,

diverse question. the getting to getting The a in marketing we to Alexia. more itself. responding it - are so diverse our think in And alluded the in answer It's approach, funnel much we Yeah. good I just to

two, likewise, and top, between top the And marketed and funnel, So Google and when being the funnel we testing aggressive the big here, the and funnel the brand I work. broader we're say, entirely of bottom the the we now evenly of Facebook. got are at pretty at getting of I the channels middle beyond more would distributed, bottom

in saw us the quarter you second So platforms. social aggressively on other marketing start more

You're that a will introduced in the spend display. that able we've each in And better different And in and pleased better finding I'm the been places with and an number - to quite where that can think more business like, on effect with are us there do sophistication we exponential experiment data video seeing I quarter. other of time. passing we kinds terms over science aggressively we're modeling. quarter. what media get, what of with We more drive with our is have I mix second think of places other to money And

If Kannan. I add, can

significantly are, the for The the for intended generating and company. about is - the other thing new context introducing they journalism firstly, The profitable of of also and effect Daily the Times is any audience The any young But news this other to think show, in indeed, Times audiences. activities way podcast, new I The potentially product, the Daily a have TV be remarkably margin to to audience The media. these

a of and journalism, engaging out this is profitable intrinsically way a with way people marketing a our Times being which cost. is than rather in messages with So reaching

fundamental part opening and come even part during and classic building large how So bigger, The the marketing of do to and is wall we a audience, engaged to a of decision to aired Times for broadly let think deal number fly quite quarter, up a of the pay which of going The we're reaching audiences. the But It's documentary, way about out a on challenge Showtime about new of also the with things, Times. it.

more add I'll on And right. The color specifically. Daily That's

more has than weekday had every As it very, business. number that is paper the for by a day day. and subscribers, growing Times, ever channel successful the is ad a listeners It very The

drops is downloaded essentially in too, particularly And most morning, big evidence have into people actually suggests that every year. that was The Daily funnel. America ton a it of story think podcast one occasionally, it we our last I because of the the format

audience to The system. makes And platform. So said, into of new folks Mark on for bringing be to and engage younger, our as the character intends people female the more more Daily it likely our

Okay.

the And on advertising. of of having digital so the was, in essentially some release press the drop off in some think, I impact comments about traffics, one

marketing the Or you are a expect function when just that initiatives on is cycle through of best figuring because versus the process traffic, so new about out that you're drop-off think channels forth? So and that mean, so should we the how I all in these this translation and which is and going trend to evolve?

that, comping for audience. late of audiences, election them. we've when to extraordinary the that Kannan, the the of year-over-year New large it's the over as and York bear digital on we've very XXXX the a few saw the And year and first years, back step terms Trump in first had QX quarter audience, Times' been New very, XXXX. York the in Talking audience a were in digital the past in But in in effect effect. considerable similar I was the administration Times and and Trump six audiences do first in the growth look very and this also particular, we with an seen of of at QX and The news effect was administration. And the against mean, months, well months advertising,

the we're executing true we successfully very It we our coming think half. going we're from going believe also through. strategy, we audience view are that is better comps than the and the of half big of that second our pipeline first about in point is reason principal because the deals stronger the the than from XXXX are be in to a fast, have year the digital the second of half first to know advertising Although

have that of will casual overtime the They're In on work the I've turn should the aspects pay some a of to to we which the more users. engaged alluded the deeply have itself of all intended of of are that effect. engaged deeply users the half the becoming ad I in is, is business, mean if you'll see look the certainly of more across less first of year. pay becoming the out advertising. audience, less reality and a much to at driven, much is the driven It That's is - should digital and on the engaged of I and into right. edges the programmatic rest audience. times much time, some this this frankly, business. by it The effect more doing, And lower And marketing, now on more product that work fundamental positive partnership more year, model, much ad over reliant effect have and sort add couple the a desirable, CPM on now. you that of more

Okay.

And which look last is one churn. at versus so gross of when you for the adds me, trajectory the

terms of remain churn gross pipeline overall subs there's shift So stable funnel? to no the at the when lines trend system? you you within versus add into in look coming for your see Is mix fair your it those that and assume that

audience to engaged to that. fair sizable still and and now a different all that's confident we remain and going to we we the that's that with an opportunity different to to the describe I the have engage to are connect platform And have think who's grow audience, of a assumption, towards market incredibly we and sort - we ways our think are we we as already coming I ways working convert evidence audience. to as

Thank you. right. All

Our Partners. Research Craig next of Huber question will Please go ahead. come Huber from

morning. Yes, a have few good questions. I

the percent one, quarter, can that? first the what the is quantified just international subs you in you of - total further talk The

XX% the International subs, were I think, quarter. of

what, You a have year that, ago, please?

I think we were XX% XX%? or XX%. XX%,

of it's But We taking we we're it's its are other in see pleased, creeping I current country-by-country. good So a I number we're time. example mean, marketing up. country, seeing really a tactics, words, we've things of Australia hired, mean, a point - positive do the you individual done we can journalists subscribers, different Craig, to And I tactics that. results, mean, making - the adopting being

And that's sort messaging, we marketing, very in proved deliberate work the and development. successful. internationally do of thinking been of in newsroom what products We've the about new

as And about work we're whole some to product spirit relates to on together. more core of work of model to things and of effectively is flywheel marketing the talking in work the getting that the on it sort

be XX%, total. that up the to that's XX% end clear the just So subs international on make of at the of QX,

Yeah.

percent We with associated the domestic. international net versus don't what adds were disclose of

you in is of then third that. coincidental assuming cycle, mean, on question marketing ramp-up in not Thank Okay. happening for my this this here I it's I election second costs ahead assume. another quarter, And the

that, Or new just on it that touch a you spend television ongoing going curious, advertising drive is of nature? new traditional Also, is of trying this is marketing way? sort If chunk rate traffic in of much to spend it marketing mind I'm just is some one-time on in decent your forward? the

a done us question. - would all first, our I from perspective. take television well in is, don't I'll that three will bit the gone which role. they've last quite say advertising, although, essentially great on you'll certainly, I sort overly that see not That's and campaigns year-and-a-half last We've play a of rely the TV

of drive about of of to terms The as aspect lives that wouldn't creating expect to them. marketing don't their sort of our I the and I audience, people aspect. be think we say dominant work, a getting we particularly think about and an television its in to it much to in sentiment but of So relevance as think Times work, role And

most Mark into mid-terms. which do. election, marketing up the business. that what newsroom more to - page the on XXXX to do you'll described. an extremely popular for And of very on when the and called We're of our or and more see this something gearing detailed days On into mid-terms, sort work has map published and strong, XX sort is effect the while. doing the the of It's We like And as a excited spend, is ago, was marketing ramp-up very proven spend, site the in the we that. that of XX that we've us - like, about around we about positive cycle we spend as can particularly relates news question peaks, that

do that. us see So of you'll more

mentioned engagement be the The to kinds at behaviors amount running might more Times. question, getting which lead spend relationship in say, to this to to on room is of thing your earlier have that other the more Times I efficiently, you think we The The on drive call, a of I in and fair

newsletter to of the And get more read think subscribers, to another efficiently there and I spend get get a download to bit and story drive spending to subscription. people to very app. closer room quite have spending to spending the people to be and people to So we get gateway

you here? subs I about those And talk in earlier, how on et I you the is then there see You bump bit digital your can prior for - also what people churn Trump but, touched levels can a mean, versus mean, the cetera? it further churn at are cohorts,

cohort are of their sort broadly previous general, the cohort. than aged at in immediate next, really is level terms we election around I any in them in of Those and in retaining question. time. right the cohorts. the their with just are two commitment in who of cohorts, would the And now far the ways: The say, so subscriptions sort the and all just better then and Good characterize pleased Times and the before election, we to the most engagement post-election of after; election came of around those and

positive here getting better stay. frequency and to I a been understanding very And we a them lot There's people day. back come better think churn, are at makes in after getting actually has story. what in day general,

on room The think their improve in particularly we Times. we relationship people, to still I with how So, early have engage

very better. it can a good still we so think get far. it's story And So

that like so newsletters the there, assume, for also, or then guys you the sort of e-mail put subscriptions, of helping the XX actually and on What's had news buy an such million like almost free. I out stuff year, all XX sort people that believe of something that that guys to sell, is drive you number? And, product? And update you middle digital product last roughly I

a question. good it's Yeah,

large registered chosen disclose have a We that to number. think I of don't users. we've

is it discoverable sort But four be evening are more really make of the getting we popular we really Times. that a we have that might see three still our a number by kind newsletters that to a our or really discoverable. of So to making of just around them, get morning And way The registration Cooking have have put The audiences opportunity of that content audiences. a as briefing, giant incredibly not of value big issue, have The powerful people a and it. briefing, bigger. people to can to I them otherwise - the way habit much think powerful up to wake dormant won't newsletters on and say, we lot get

of experiment going the around couple at we read stories they've around Android our you're see registration meter. another where registration the experiments now, the people tell so got in around and more in essentially app, So We've there. in market live one gateway, aggressively registration right to all us one available

can an more register see You that. got going to can now where unlock you'll and we've - stories more experiment you of

you very Thank Great. much.

is from question Please go follow-up a ahead. next Huber Our of Doug Research. Arthur

digital-only the subs just wanted mean, to pricing of base down? slightly like it's be of quarter, if number. - on line that your it sub of second non-news should kind was mean, particularly a a that better. to be embed that fair? Is the I I follow-up kind guide higher Yeah, QX seems now, Is But I flat - growth, in the could to given subscription tad thanks. revenue high-teens. ARPU. it down seems of with good for

to add I'll may and this take it. Roland

describe. I'll as I an fair think, and there's output, amount noise ARPU of in try system and all, the at first we of that look a

access we see which in of in and going to all-digital we're real side, positive as about our you're very products. the it. those us has On Crossword we've forward, go optimistic bundle, uptake And progress Cooking

value now. You're we them. about, into products see some talked product us doing see keep going adding to that we're parenting that out And keep rolling work also us on you'll new

that, impact prior some the the also quarter you On saw are in with we more internationally of And experimenting discounting. aggressively side other of currency.

So fair of amount directions… all in to the system say that I both in think a noise there's

we that in rate in heard And very users. of grow domestically, much you've about eye demand forgotten go revenue. how we me than applying mean, Doug, make that. out a of very I looking issue keeping out. our internationally, We not haven't where digital that pricing lever. less and important or have we're that we strongly. overcome that of a get - a revenue to before, on price - - we both growth also subscription close ARPU the much things don't keep going we at the of rule we quarters think the sure want to, We it do thinking we whether But particular, plays bigger Yeah, of that how at to base as say And depending is on I'm all growth sure one

right. That's

price You'll on both [ph]. quarters see us continue to the in demand of sides coming curve experiment the with

Okay. Thank you.

concludes This turn to any session. over for Toplitzky question-and-answer to remarks. I like the Harlan our back conference would closing

Thank joining morning. you you talking to forward next for again this us look again to quarter. We

attending you now has Thank today's Ladies concluded. conference and for presentation. gentlemen, the

your disconnect now may lines. You