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Jun 30, 2024
Gannett Q2 2024 Earnings Report
Reported strong financial results with year-over-year growth in Adjusted EBITDA and improved same store revenue trends.
Key Takeaways
Gannett reported its Q2 2024 financial results, highlighting growth in digital revenues and a reduction in net debt. The company repaid $24.3 million of debt and total net debt fell under $1.0 billion. The company reiterated its full year 2024 outlook and its outlook over the course of 2025 and 2026.
Total digital revenues reached $278.4 million, representing 43.5% of total revenues, a 6.2% increase year-over-year.
Digital-only subscription revenues grew 22.3% year-over-year, reaching $46.3 million.
Net income attributable to Gannett improved by $26.4 million year-over-year to $13.7 million.
Free cash flow improved sequentially by $15.9 million compared to the first quarter of 2024, totaling $25.4 million.
Revenue by Segment
Forward Guidance
The company reiterates its full year 2024 outlook and its outlook over the course of 2025 and 2026.
Positive Outlook
- Total digital revenues are expected to grow approximately 10%.
- Net income attributable to Gannett is expected to improve, after excluding an impairment charge of approximately $46.0 million.
- Adjusted EBITDA is expected to grow versus the prior year.
- Cash provided by operating activities is expected to grow versus the prior year.
- Free cash flow is expected to grow in excess of the expected growth in Adjusted EBITDA.
Challenges Ahead
- Total revenues are expected to be down in the low to mid-single digits on a reported and same store basis.
- Capital expenditures are expected to increase as a result of investments in technology and products.
- Total revenues are expected to grow in the low single digits on a reported basis and same store basis.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
Analyze how earnings announcements historically affect stock price performance
Avg. Return Before/After Earnings
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