Gannett(US:GCI)2025-05-01 13:32Financial Data and Key Metrics Changes - Total operating revenues for Q1 were $571.6 million, a decrease of 10.1% year-over-year, or 7.7% on a same-store basis [31] - Adjusted EBITDA totaled $50.5 million, representing a margin of 8.8%, with a year-over-year decline in line with expectations [33] - The company reported a net loss of $7 million, an improvement of approximately $77 million compared to the previous year [35] Business Line Data and Key Metrics Changes - Total digital revenues in Q1 were $250.4 million, down 6.4% year-over-year, representing approximately 44% of total revenues [36] - Digital-only subscription revenues exceeded $43 million, reflecting minor same-store growth, impacted by elevated customer churn [36] - Adjusted EBITDA for the Digital Marketing Solutions (DMS) segment totaled $8.5 million, with core platform revenue at $108.2 million [39] Market Data and Key Metrics Changes - The company experienced a slowdown in digital advertising trends, particularly in the UK market, affecting the NewsQuest segment [38] - The average monthly unique visitors reached 195 million, growing over 4% compared to the prior year [14] Company Strategy and Development Direction - The company aims to leverage its industry-leading scale and diverse digital businesses to capture long-term growth opportunities [11] - A key focus is on enhancing monetization opportunities through a unified content strategy and the launch of new platforms like Studio Nine [19] - The company is committed to reducing debt and improving its capital structure, with expectations to repay over $125 million in debt through various means [42] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving financial objectives for 2025, despite a challenging economic backdrop [6] - The recent DOJ ruling against Google is seen as a positive development that could lead to a more equitable digital advertising marketplace [12] - Management noted that Q1 results were viewed as an anomaly, with expectations for improved revenue trends in the second half of the year [66] Other Important Information - The company made significant leadership changes, including the appointment of a new CFO, to strengthen financial and operational performance [10] - The company is focused on enhancing customer experience and retention through product development and marketing initiatives [28] Q&A Session Summary Question: Impact of DOJ case against Google - Management believes the ruling sets the stage for a more favorable ad marketplace, potentially increasing revenue shares for publishers [46] Question: Adjustments to affiliate revenue business - The company is working with affiliate partners to navigate changes and reenergize revenue growth through existing content [50] Question: Confidence in 2025 guidance - Management reaffirmed confidence in guidance, citing improvements in retention and operational efficiencies [56] Question: Digital subscription revenue trends - On a same-store basis, there was some growth in digital subscriptions, but impacted by revenue reversals [74] Question: Tools to aggregate budgets onto the platform - The company is leveraging relationships with advertisers and building out first-party data solutions to drive up CPM [80] Question: Status of non-strategic asset sales - The company has largely worked through its real estate portfolio and does not feel pressured to sell assets that could negatively impact the business [83]