Q2 2024 Gannett Co Inc Earnings Call Transcript
Key Points
- Gannett Co Inc (GCI) reported a strong second quarter with adjusted EBITDA growth reaching approximately $75 million, up nearly 5% over the prior year.
- Digital revenues increased by 6.2% and now account for 44% of total revenues, driven by growth across all key digital revenue categories.
- The company achieved new highs in digital-only subscription revenue and ARPU, with growth rates of at least 20% over the prior-year period.
- Gannett Co Inc (GCI) improved its balance sheet, moving first-lien net leverage below two times to 1.9 times, while maintaining strong liquidity.
- The company saw increased engagement with its digital audience, resulting in the third consecutive quarter of year-over-year growth in digital advertising.
- Total operating revenues decreased by 4.8% or 4.6% on a same-store basis, indicating a decline in overall revenue.
- Digital Marketing Solutions (DMS) revenue growth slowed slightly compared to the strong first quarter, with lower budget retention early in the quarter.
- Higher-than-expected churn in digital advertising and DMS results impacted revenue, primarily in lower margin accounts.
- The company is still facing challenges in stabilizing print revenue, which remains a declining category.
- Despite improvements, Gannett Co Inc (GCI) continues to face competitive pressures in the traditional media industry, which is generally experiencing declines.
Greetings and welcome to Gannett's Second Quarter 2024 Earnings Call. At this time, all participants are in a listen-only mode and a question-and-answer session will follow the formal presentation. (Operator Instructions) Please note this conference is being recorded.
I will now turn the conference over to your host, Matt Esposito, Head of Investor Relations. Sir, you may begin.
Thank you. Good morning, everyone and thank you for joining our call today to discuss Gannettâs second quarter 2024 financial results. Presenting on todayâs call will be Mike Reed, Chairman and Chief Executive Officer; Doug Horne, Chief Financial Officer, Kristin Roberts, Chief Content Officer and Chris Cho, President of Digital Marketing Solutions.
If you navigate to the Gannett website, you will find that we have posted an earnings supplement in addition to our earlier press release. We will be referencing it today on the call, as it provides you with additional detail on this quarterâs performance.
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