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Mar 31, 2022
Gannett Q1 2022 Earnings Report
Reported first quarter results, with digital-only paid subscriber growth and digital marketing solutions core platform revenues increasing year-over-year.
Key Takeaways
Gannett's first quarter performance exceeded expectations, driven by strong growth in digital-only circulation and digital marketing solutions. The company is reiterating its full year guidance for 2022, with digital revenues accounting for more than one-third of total revenues. Gannett continues to focus on its digital transformation, aiming to generate significant free cash flow and improve its balance sheet.
Digital-only paid subscribers increased 44% year-over-year, surpassing 1.75 million.
Digital Marketing Solutions core platform revenues rose 14% year-over-year to $107.3 million.
Total digital revenues grew 9% year-over-year, representing 34% of total revenues.
The company is reiterating its full year guidance for 2022.
Forward Guidance
Gannett provided its outlook for the second quarter and full year 2022, including revenue, net income, cash flow, and adjusted EBITDA estimates. The company expects revenue between $780 million and $790 million for Q2 2022 and $3.1 billion to $3.2 billion for the full year. Ending digital-only subscribers are expected to reach 1.85 million+ in Q2 and 2.0 million to 2.2 million for the full year.
Positive Outlook
- Revenue between $780M to $790M for Q2 2022 and $3.1B to $3.2B for FY 2022.
- Net income attributable to Gannett is expected to be ~$0M for Q2 2022 and $50M to $70M for FY 2022.
- Cash provided by operating activities is expected to be ~$5M for Q2 2022 and $205M to $225M for FY 2022.
- Adjusted EBITDA is expected to be $80M to $85M for Q2 2022 and $380M to $400M for FY 2022.
- Ending digital-only subscribers are expected to be 1.85M+ for Q2 2022 and 2.0M to 2.2M for FY 2022.
Challenges Ahead
- Same-store total revenues are expected to decrease by (3)% to (1)% year-over-year for Q2 2022 and increase by (2)% to +1% for FY 2022.
- Free cash flow is expected to be ($10M) to ($5M) for Q2 2022 and $160M to $180M for FY 2022.
Historical Earnings Impact
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