Gannett Co., Inc. (NYSE: GCI) has reported its financial results for the third quarter ended September 30, 2024, and updated its full-year outlook. The company's total digital revenues surpassed 45% of total revenues, representing an all-time high, with year-over-year growth in several digital revenue categories. Notably, digital-only subscription revenues grew by 25.0% to $50.1 million, and digital advertising revenues increased by 4.9% to $84.7 million. Additionally, the company recorded a record 203 million average monthly unique visitors, marking a 7.4% increase compared to the prior year period.
In terms of financial performance, Gannett reported total revenues of $612.4 million for the third quarter of 2024, reflecting a decrease of 6.2% compared to the same period last year. However, the company highlighted that same store revenues decreased by 5.3%, indicating an improvement of 310 basis points. The net loss attributable to Gannett was $19.7 million, while adjusted net loss attributable to Gannett improved by $16.6 million to reach $6.1 million. Adjusted EBITDA totaled $62.9 million, noting an increase of 5.6%, and the adjusted EBITDA margin improved by 120 basis points. Cash provided by operating activities increased to $33.7 million, up by $13.1 million, and free cash flow grew by 168% to $19.8 million.
Gannett also provided insights into its capital structure, revealing that as of September 30, 2024, the company had cash and cash equivalents of $101.8 million. The total principal debt outstanding at the same date was $1,061.4 million, with a first lien net leverage of 1.76x, indicating a decrease of 10.2% compared to the prior year period. Additionally, the company repaid approximately $28.5 million of debt.
Looking ahead, Gannett shared its full-year 2024 business outlook, expecting total digital revenues to grow approximately 6%-7% on a same-store basis, while total revenues are anticipated to decrease in the low to mid-single digits on both a reported and same-store basis. The company also provided its business outlook for 2025-2026, projecting accelerated growth in total digital revenues, the total revenue, net income attributable to Gannett, adjusted EBITDA, cash provided by operating activities, and free cash flow.
The company's management will host a conference call on October 31, 2024, to further discuss the financial and operating results for the period.
Gannett Co., Inc. is a diversified media company with a portfolio of trusted media brands, including the USA TODAY NETWORK and Newsquest, a wholly-owned subsidiary operating in the United Kingdom. Additionally, the company's digital marketing solutions brand, LocalIQ, enables small and medium-sized businesses to grow, while USA TODAY NETWORK Ventures, its events division, creates impactful consumer engagements, promotions, and races. As a result of these announcements, the company's shares have moved -14.7% on the market, and are now trading at a price of $4.96. For more information, read the company's full 8-K submission here.
