Looking more closely at Meredith's fiscal 2018 first quarter compared to the prior-year period: •Local Media Group revenues were $154 million, operating profit was $41 million and EBITDA was $49 million, all record highs for a non-political first quarter. Non-political advertising revenues increased 4 percent to $88 million, led by growth in the Atlanta, Phoenix and St. Louis markets. Digital advertising revenues grew 14 percent. Other revenues increased 24 percent, primarily due to growth in retransmission-related revenues. •National Media Group revenues were $239 million. Operating profit grew 17 percent to $28 million. Excluding the special item in the first quarter of fiscal 2018, operating profit grew 4 percent to $25 million, driven primarily by lower operating expenses in Meredith's magazine business. Circulation revenues grew slightly compared to the prior-year period. •Total Company digital advertising revenues were a fiscal first quarter record. Traffic across Meredith's digital properties increased to 83 million average monthly unique visitors. National Media Group digital advertising revenues accounted for 30 percent of National Media Group advertising revenues. Click Read More below for additional information.
Gannett Co., Inc. (NYSE:GCI) (“Gannett” or the “Company”) today issued the following statement regarding its $15.00 per share all-cash, no financing contingency, premium offer to acquire Tribune Publishing Company (NYSE:TPUB) (soon to be renamed “tronc”) (“Tribune”).
Gannett thanks the stockholders of Tribune for their historic, substantial support for its “WITHHOLD” vote at the Tribune Publishing 2016 annual meeting. The final results confirm the conclusions Gannett drew in its June 2, 2016 press release, including that five of eight Tribune directors received less than 50 percent support from shares voted that are unaffiliated with Tribune or its Chairman Michael Ferro.
Gannett values the 11 iconic newspapers of Tribune and has determined to keep its offer in place as it evaluates various near-term developments, including the Tribune second quarter 2016 financial results, which are expected in August.
Gannett continues to believe that the Tribune Board should engage constructively with Gannett toward negotiating a merger agreement that benefits both companies’ stockholders. Gannett also believes it is imperative for due diligence to occur soon given the apparent rapid series of changes taking place inside Tribune that may diminish the value of Tribune to Gannett.
Gannett urges Tribune to stop delaying constructive negotiations by insisting on limiting conditions in its non-disclosure agreement (NDA). Gannett is ready to sign a customary NDA for an all-cash transaction of this type that will not have a financing contingency – similar to the version sent to Tribune in April – and does not limit its options to submit an offer directly to Tribune stockholders. Gannett believes that maintaining this flexibility is important in light of the continued opposition to Gannett’s offer from Tribune’s Ferro-led board.
Gannett’s $15.00 all-cash, no financing contingency offer represents a premium of 99 percent to the $7.52 closing price of Tribune’s common stock on April 22, 2016, the last trading day before Gannett publicly announced its initial offer for Tribune. The $15.00 per share offer also represents a 76 percent premium to the $8.50 share price at which Tribune recently issued common stock to an entity controlled by Michael Ferro.