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Mar 31, 2021
Gannett Q1 2021 Earnings Report
Gannett's Q1 2021 revenues decreased but digital subscriptions grew, and the company achieved significant synergy targets.
Key Takeaways
Gannett reported a decrease in first quarter revenues, but experienced growth in digital-only subscriptions and digital marketing solutions. The company also successfully refinanced its term loan and achieved its synergy target ahead of schedule.
Total digital revenues were $229.2 million or 29.5% of total revenues.
Paid digital-only subscriptions surpassed 1.2 million, an increase of 37% from the prior year period.
Achieved $300 million of annualized synergies to date, ahead of targeted timeline.
Adjusted EBITDA totaled $100.5 million, an increase of $1.4 million or 1.4% compared to the first quarter of 2020 and represented a 12.9% margin.
Forward Guidance
Gannett is focused on a long-term, subscription-led, digital growth strategy and expects to meaningfully grow Adjusted EBITDA year over year.
Positive Outlook
- Company expects to sell an additional $90 million to $115 million in non-core assets during the remainder of 2021 that are anticipated to accelerate debt pay down and further reduce cash interest costs.
- Management remains confident in its ability to implement additional measures by the end of 2021 that are expected to result in the Company outperforming original synergy targets, resulting in a total of $325 million of annualized synergies.
- With the refinancing behind us, we are focused on a long-term, subscription-led, digital growth strategy.
- The first quarter of 2021 was our best quarter to date for new digital-only subscriptions.
- Core digital marketing solutions teams also had a fantastic quarter, setting new records in productivity.
Challenges Ahead
- First quarter revenues of $777.1 million decreased 18.1% as compared to the prior year quarter.
- Same store revenues decreased 16.5% compared to the first quarter of 2020, due to unfavorable impacts resulting from the COVID-19 pandemic and general trends adversely impacting the publishing industry.
Historical Earnings Impact
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