“Our second quarter results and updated full year outlook reflect industry-wide headwinds in digital advertising as well as rising costs and pressures on consumers which are impacting our near-term performance. During the quarter we experienced a rapidly tightening macroeconomic environment caused by rising inflation coupled with distribution labor shortages and price sensitive consumers which has affected our traditional print business. Despite these challenges, our investments in our key operating pillars are yielding impressive results. We continue to experience considerable progress in our digital transformation and finished the quarter with 1.87 million digital paid subscribers, growing 35% year-over-year. In addition, our Digital Marketing Solutions business generated its highest quarter of core platform revenue of $116 million, and its highest quarter of core platform customers of over 16 thousand, while maintaining double-digit Adjusted EBITDA margins,” said Michael Reed, Gannett Chairman and Chief Executive Officer.
“Our revised guidance reflects our outlook based on current economic conditions. We are not satisfied with our overall performance in the second quarter and have quickly responded to this rapidly deteriorating economic environment by implementing a significant cost reduction program that we believe will better position the Company to realize its long-term growth goals, with a lower and more variable cost structure. The changes and reductions to our cost structure are focused primarily on our legacy print business.”
“Along with strategic reductions to our cost structure, we have identified additional non-strategic and real estate assets to bring to market. We remain focused on repaying $150 million to $200 million of debt in 2022.”
Second Quarter 2022 Financial Highlights:
*Total revenues of $748.7 million decreased 6.9% compared to the second quarter of 2021
*Same store revenues(1) decreased 6.3% compared to the second quarter of 2021
*Total digital revenues were $261.8 million or 35% of total revenues, up 1.5% over the same period in the prior year on a same store(1) basis
*Net loss attributable to Gannett of $53.7 million, a margin loss of 7.2%
*Cash used for operating activities of $30.7 million
*Free cash flow(1) usage of $43.3 million, impacted by $34.4 million of cash interest, including the first interest payment on the 2026 Senior Notes, which is payable every six months on an ongoing basis
details at: https://investors.gannett.com/news/news-details/2022/Gannett-Announces-Second-Quarter-2022-Results–Updated-Full-Year-Outlook/default.aspx