Gannett(US:GCI)2025-10-30 13:59Revenue Performance - Total revenues for Q3 2025 were $560.8 million, a decrease of 8.4% compared to $612.4 million in Q3 2024[13] - Digital revenue for Q3 2025 was $262.7 million, down 5.3% from $277.4 million in Q3 2024[13] - Print and commercial revenue decreased by 11.1% to $298.1 million in Q3 2025 from $335.1 million in Q3 2024[13] - For the nine months ended September 30, 2025, total revenues were $1.72 billion, a decrease from $1.89 billion in the same period of 2024, reflecting a decline of 9.0%[35] - International operations contributed 12.9% of total revenues for the three months ended September 30, 2025, up from 11.4% in the same period of 2024[34] - Segment revenues for Domestic Gannett Media were $417.1 million for the three months ended September 30, 2025, down from $468.5 million in the same period of 2024, a decrease of about 10.9%[119] - Digital Marketing Solutions generated $114.4 million in revenues for the three months ended September 30, 2025, compared to $119.9 million in the same period of 2024, reflecting a decline of approximately 4.2%[119] Net Loss and Income - Net loss attributable to Gannett for Q3 2025 was $39.2 million, compared to a net loss of $19.7 million in Q3 2024[13] - For the nine months ended September 30, 2025, Gannett achieved a net income of $31.81 million, compared to a net loss of $90.71 million for the same period in 2024[18] - The company experienced a net loss attributable to Gannett of $39,249,000 for Q3 2025, compared to a net loss of $19,653,000 in Q3 2024[121] - Basic loss per share attributable to Gannett for the three months ended September 30, 2025, was $(0.27), compared to $(0.14) in the same period of 2024[96] Operating Costs - Operating costs for Q3 2025 were $352.3 million, a decrease of 6.3% from $375.9 million in Q3 2024[13] - Total operating costs decreased by $26.4 million (9%) and $98.6 million (11%) for the three and nine months ended September 30, 2025, reflecting lower costs in newsprint, distribution, and compensation[180] - Selling, general and administrative expenses decreased by $13.5 million (10%) and $27.9 million (7%) for the three and nine months ended September 30, 2025, primarily due to a decline in payroll expenses[186] Cash and Assets - Cash provided by operating activities for the nine months ended September 30, 2025, was $71.0 million, down from $91.3 million in the same period of 2024[14] - The company reported a decrease in cash and cash equivalents to $75.2 million as of September 30, 2025, from $106.3 million at the end of 2024[12] - Total assets decreased to $1.92 billion as of September 30, 2025, from $2.04 billion at the end of 2024[12] - Total liabilities decreased to $1.73 billion as of September 30, 2025, from $1.89 billion at the end of 2024[12] Debt and Interest - The total debt as of September 30, 2025, was $996.4 million, down from $1,111.8 million as of December 31, 2024, indicating a reduction of approximately 10.4%[47] - Interest expense for the nine months ended September 30, 2025, was $56.8 million, compared to $26.9 million for the same period in 2024, reflecting a 111% increase[55] - The effective interest rate for the 2029 Term Loan Facility as of September 30, 2025, was 9.9%[56] Segment Performance - Domestic Gannett Media segment reported adjusted EBITDA of $35,362,000 for Q3 2025, down 23.7% from $46,301,000 in Q3 2024[121] - Digital revenues for the three months ended September 30, 2025, decreased by $5,511, or 5%, compared to the same period in 2024[199] - Digital advertising revenues increased by 3% to $73.0 million for the three months ended September 30, 2025, compared to $71.2 million in 2024, driven by an increase in national revenues[173] Other Comprehensive Income and Expenses - Other comprehensive income for the nine months ended September 30, 2025, was $8.47 million, while the prior year reported $6.93 million[18] - Share-based compensation expense for the nine months ended September 30, 2025, totaled $6.84 million, compared to $9.24 million in the same period of 2024[18] - The total compensation cost not yet recognized related to non-vested awards as of September 30, 2025, was $18.0 million, expected to be recognized over a weighted-average period of 2.4 years[98] Legal and Regulatory Matters - The Company filed a civil action against Google seeking injunctive relief and damages for anticompetitive practices in advertising technology markets[107] - The Company plans to continue engaging experts for the lawsuit against Google, although it does not expect significant costs associated with this action[107] Strategic Focus - Gannett operates in three segments: Domestic Gannett Media, Newsquest, and Digital Marketing Solutions, focusing on digital-first strategies and audience engagement[20][21] - The Domestic Gannett Media segment is focusing on optimizing print operations due to declining print audience, while aiming to grow a digitally-oriented audience[131]