On August 1, 2024, Gannett Co Inc (GCI, Financial) released its 8-K filing for the second quarter of 2024, showcasing a mixed performance. The digital newspaper company, known for its brands like USA TODAY and over 250 daily newspapers, operates through three segments: Domestic Gannett Media, Newsquest, and Digital Marketing Solutions.
Performance Overview
Gannett Co Inc (GCI, Financial) reported total revenues of $639.8 million for Q2 2024, a 4.8% decrease compared to the same period last year. This figure fell short of the analyst estimate of $645.02 million. However, the company posted a net income attributable to Gannett of $13.7 million, a significant improvement from the $12.7 million loss in Q2 2023. This translates to an earnings per share (EPS) of $0.10, surpassing the analyst estimate of $0.09.
Key Financial Achievements
Despite the revenue decline, Gannett Co Inc (GCI, Financial) achieved several financial milestones:
- Adjusted EBITDA increased to $74.6 million, up by $17.0 million from Q1 2024.
- Free cash flow improved to $25.4 million, a sequential increase of $15.9 million.
- Debt repayment of $24.3 million, reducing total net debt to below $1.0 billion for the first time since the 2019 acquisition of legacy Gannett.
Digital Growth
Digital revenues continued to be a bright spot for Gannett Co Inc (GCI, Financial), accounting for 43.5% of total revenues. Key digital highlights include:
- Total digital revenues of $278.4 million, up 6.2% year-over-year.
- Digital-only subscription revenues grew by 22.3% to $46.3 million.
- Digital advertising revenues increased by 3.6% to $84.5 million.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenues | $639.8 million | $672.4 million |
| Net Income | $13.7 million | -$12.7 million |
| Adjusted EBITDA | $74.6 million | Not Provided |
Balance Sheet and Cash Flow
As of June 30, 2024, Gannett Co Inc (GCI, Financial) had cash and cash equivalents of $98.9 million. The company’s total principal debt stood at $1.09 billion, with a first lien net leverage ratio of 1.9x. Cash provided by operating activities was $35.1 million, a $12.7 million increase from Q1 2024.
Challenges and Strategic Outlook
While Gannett Co Inc (GCI, Financial) faces challenges such as declining print revenues, the company is optimistic about its digital transformation. The company reiterated its full-year 2024 outlook, expecting total digital revenues to grow by approximately 10% and total revenues to decline in the low to mid-single digits. The company also aims to achieve a revenue growth inflection point by the end of 2024.
We are pleased to report another strong quarter of financial results. In fact, our operational execution led to year-over-year growth in Adjusted EBITDA and further improvement to our same store revenue trends," said Michael Reed, Gannett Chairman and CEO.
For more detailed insights, visit the full 8-K filing.
Explore the complete 8-K earnings release (here) from Gannett Co Inc for further details.
