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Dec 31, 2024
Gannett Q4 2024 Earnings Report
Reported financial results for the fourth quarter ended December 31, 2024, with digital revenues exceeding 45% of total revenues and full-year growth in Adjusted EBITDA and free cash flow achieved.
Key Takeaways
Gannett's Q4 2024 results show a digital transformation with digital revenues exceeding 45% of total revenues. The company delivered full-year growth in Adjusted EBITDA and free cash flow, while repaying $73.5 million of debt. They are confident in achieving their 2025 expectations.
Total digital revenues reached $280.4 million, a 1.2% increase year-over-year (3.4% on a same store basis).
Digital-only subscription revenues grew by 17.0% to $49.0 million.
Average monthly unique visitors increased by 7.0% to 200 million.
Net income attributable to Gannett was $64.3 million, with a margin of 10.4%.
Forward Guidance
Gannett anticipates building on its progress in 2025, expecting total revenue growth, growth in digital revenues and Adjusted EBITDA, significant free cash flow generation, and meaningful debt reduction.
Positive Outlook
- Total digital revenues are expected to grow approximately 7%-10% on a same store basis.
- Total digital revenues are expected to make up 50% of total revenues during 2025.
- Net income attributable to Gannett is expected to improve compared to the prior year.
- Adjusted EBITDA is expected to grow versus the prior year.
- Cash provided by operating activities is expected to grow in excess of 30% versus the prior year.
Challenges Ahead
- Total revenues are expected to be down in the low single digits on a same store basis.
- Capital expenditures are expected to increase as a result of investments in technology and products.
- The company's estimates factor in the pending sale of the Austin American-Statesman but do not factor in the impact of any future acquisitions or dispositions.
Historical Earnings Impact
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