Gannett Co., Inc. (NYSE: GCI) (“Gannett” or “company” or “we”) today reported second quarter 2017 financial results for the period ended June 25, 2017. Gannett also reiterated its 2017 full year revenue outlook and increased the lower end of its full year adjusted EBITDA1 guidance based on its solid first half performance.
“We made further strides during the second quarter to position Gannett for long-term, profitable growth,” said Robert J. Dickey, president and chief executive officer. “We transitioned all of our core Gannett digital marketing services clients to the ReachLocal platform, signed a new employment advertising partnership with RealMatch, and created a new digital ad format powered by a proprietary data engine.”
Mr. Dickey continued, “Moving forward, we will focus on driving audience growth and engagement through additional new product capabilities, while also expanding our marketing services to offer complete solutions for both local and national advertisers. At the same time, we will continue to maximize the economic value of our print business to allow for reinvestment to fuel our digital growth.”
Second Quarter 2017 Consolidated Results
Second quarter operating revenues increased 3.4% to $774.5 million, including a $9.1 million unfavorable foreign currency impact, compared to $748.8 million in the prior year quarter. The year-over-year increase was due to the contribution from acquired operations2. On a same store basis, operating revenues in the second quarter declined 10.6%, a slight improvement compared to a decline in the 2017 first quarter of 10.8%, as a result of improved domestic print advertising and circulation revenues. Total digital revenues in the second quarter grew 43.5% year-over-year to $242.6 million, or approximately 31% of total revenue, which includes the contribution from ReachLocal acquired in August 2016.
GAAP net loss for the second quarter was $0.5 million, including $21.8 million of after-tax restructuring, acquisition, severance, asset impairment, facility consolidation and other related costs; approximately $14.6 million of these charges were non-cash. Adjusted EBITDA for the second quarter was $83.7 million compared to $91.7 million in the prior year quarter.
Publishing segment operating revenues in the second quarter were $692.2 million compared to $748.1 million in the prior year quarter. On a same-store basis, publishing segment operating revenues in the second quarter declined 10.7%. This performance is consistent with the 2017 first quarter and reflects improved print advertising and circulation revenues, offset by declines in commercial printing and other revenue. Same store print advertising revenues in the second quarter declined 16.8%, an improvement from the 2017 first quarter decline of 17.8% driven by better domestic national retail trends. Same store circulation revenues fell 7.4%, better than the 2017 first quarter decline of 8.0% due to modest price increases implemented late in the second quarter and 59.5% year-over-year growth in digital-only subscriber volumes, which now total approximately 290,000.
Digital advertising revenues in the second quarter increased 1.3% to $99.5 million compared to the prior year quarter as contributions from acquisitions were partially offset by an unfavorable foreign currency impact of $1.6 million. On a same store basis, digital revenues increased 0.3% as continued strong growth in areas such as mobile display and branded content were offset by classified declines within the employment category. Digital revenue growth in the second quarter was reduced by approximately 2% as a result of transitioning the Gannett markets from G/O Digital to ReachLocal.
Publishing segment adjusted EBITDA for the quarter was $104.1 million, which includes $2.5 million in unfavorable foreign currency impact, compared to $114.3 million in the prior year second quarter.
more detail at: http://www.gannett.com/news/press-releases/2017/8/3/gannett-reports-second-quarter-2017-results-operations/