Q3 2024 Gannett Co Inc Earnings Call Transcript
Key Points
- Gannett Co Inc (GCI) achieved a milestone of surpassing 200 million average monthly unique visitors, reflecting a 7% growth compared to the prior year.
- The company reported a significant increase in free cash flow, generating approximately $20 million, which is a 168% increase compared to the previous year.
- Digital revenue accounted for over 45% of total revenues, marking an all-time high for Gannett Co Inc (GCI).
- The digital-only subscription business saw robust growth, with revenue surpassing $50 million and ARPU climbing above $8.
- Gannett Co Inc (GCI) successfully completed debt refinancing transactions, extending maturity and reducing potential future share dilution.
- Total revenue was lower than expected due to the sale and unwind of non-strategic businesses and softer trends in the Newsquest and DMS segments.
- The DMS business experienced a contraction in advertising spend rates, particularly in the home services vertical, due to economic uncertainty.
- Year-over-year total operating revenues decreased by 6.2%, impacted by strategic decisions to close or divest certain businesses.
- The anticipated revenue inflection point is expected to come later than initially projected, affecting short-term growth expectations.
- The company faced challenges in the print segment at Newsquest, reflecting a temporary slowdown in local economic conditions.
Greetings. Welcome to the Gannett Company Incorporated third quarter, 2024 earnings call. At this time, all participants are in a listen-only mode.
A question and answer session will follow the formal presentation.
If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Matt Esposito, Head of Investor Relations. You may begin.
Thank you. Good morning, everyone and thank you for joining our call today to discuss Gannett's third quarter, 2024 financial results presenting on today's 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 additional or earlier press release. We will be referencing it
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