Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Benzinga
Benzinga
Business
Shivani Kumaresan

Why Gannett Shares Are Sliding Today

  • Gannett Co Inc (NYSE:GCI) reported a first-quarter FY22 sales decline of 3.7% year-on-year to $748.08 billion, missing the consensus of $754.90 million. Same-store revenues decreased 2.5%.
  • Publishing revenues were $670.4 million, and Digital Marketing Solutions revenues were $109.7 million.
  • Advertising and marketing services revenues decreased 3.4%, while Circulation revenues declined 11.3%.
  • Digital revenues rose 9.7%, and Digital Marketing Solutions' revenue improved 8.2on a same-store basis.
  • Digital-only paid subscribers increased 44% Y/Y and surpassed 1.75 million at the end of Q1.
  • Operating expenses fell by 2.5% Y/Y to $750.5 million. The operating loss for the quarter was $(1.9) million versus an income of $7.9 million last year.
  • Adjusted EBITDA decreased 36.1% Y/Y to $64.2 million and represented an 8.6% margin.
  • EPS loss of $(0.02) narrowed from $(1.06) last year. Adjusted net income attributable was $4.5 million.
  • GCI held $152.2 million in cash and equivalents as of March 31, 2022. Net cash provided by operating activities for the quarter amounted to $32.4 million with a free cash flow of $21.7 million.
  • Outlook: Gannett sees Q2 sales of $780 million - $790 million versus the consensus of $788.7 million.
  • It expects FY22 sales of $3.1 billion - $3.2 billion, against the consensus of $3.12 billion.
  • Price Action: GCI shares are trading lower by 5.24% at $3.98 on the last check Thursday.
Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.