Q1 2024 Gannett Co Inc Earnings Call Transcript
Key Points
- Gannett Co Inc (GCI) reported a significant improvement in digital revenue, which grew by 8% year-over-year and now represents over 42% of total revenues.
- Digital-only subscription revenue and digital-only RPU reached new highs, with growth rates exceeding 20% compared to the first quarter of the previous year.
- The company's Digital Marketing Solutions (DMS) business returned to growth, with revenues up 3.7% over the same period last year, ahead of expectations.
- Partnership revenue nearly doubled over the prior year, contributing significantly to earnings and free cash flow with high margins.
- Gannett Co Inc (GCI) achieved a marked improvement in free cash flow compared to the prior year period and improved sequential year-over-year trends in adjusted EBITDA.
- Total operating revenues for Q1 were down by 5%, indicating a decrease despite improvements in digital revenue streams.
- The company reported a net loss of $84.8 million for the quarter, influenced by a $46 million asset impairment related to the exit from its leased McLean, Virginia facility.
- Despite growth in digital areas, the print and commercial revenues segment continues to face challenges, necessitating ongoing efforts to improve trends in legacy revenue streams.
- While digital revenues are growing, the overall revenue deceleration and the need for continued significant improvements highlight ongoing pressures in transitioning to a digital-first business model.
- The company's adjusted net loss of $36.4 million reflects ongoing financial challenges despite positive developments in digital and partnership revenues.
Greetings and welcome to the Gannett Company, Inc., Q1 2024 earnings call. (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. You may begin.
Thank you. Good morning, everyone, and thank you for joining our call today to discuss Gannett's First Quarter 2024 financial results. And 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 addition or earlier press release, we will be referencing it today on the call as it provides you with additional detail on this quarter's performance.
Before we begin, please let me remind you that this call is being recorded. In addition, certain statements made during this call are or may be deemed to
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