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Jun 30, 2020
Gannett Q2 2020 Earnings Report
Gannett's revenue aligned with guidance, and EBITDA performance benefited from expense reduction efforts.
Key Takeaways
Gannett reported second-quarter results significantly impacted by the COVID-19 pandemic, but revenue was in line with guidance, and EBITDA performance benefited from expense reduction efforts. They saw sequential improvement to revenue each month during the quarter and successfully realized over $125 million of incremental expense savings. Over $160 million in annualized synergy measures were implemented by the end of the quarter.
Second quarter revenues of $767.0 million rose 89.7% as compared to the prior year, reflecting the Acquisition.
Digital advertising and marketing services revenues were $168.8 million in the second quarter, or 22.0% of total revenues.
Over $160 million in annualized synergy measures were implemented by the end of the second quarter, with approximately $41.2 million in savings recognized in the quarter.
GAAP net loss attributable to Gannett of $436.9 million in the second quarter reflects $393.4 million of non-cash goodwill and intangible impairment and $66.3 million of depreciation and amortization.
Forward Guidance
Management expects to have implemented measures that will result in over $200 million in annualized savings by the end of the third quarter and to realize $50 - $55 million in savings during the third quarter. Management remains highly confident in its ability to implement measures by the end of 2021 that are expected to result in $300 million in synergies.
Positive Outlook
- Implemented cumulative measures by the end of the second quarter that will result in over $160 million in annualized savings.
- Realized $41.2 million in savings in the second quarter.
- Expect to have implemented measures that will result in over $200 million in annualized savings by the end of the third quarter.
- Expect to realize $50 - $55 million in savings during the third quarter.
- Management remains highly confident in its ability to implement measures by the end of 2021 that are expected to result in $300 million in synergies.
Historical Earnings Impact
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