- Gannett (NYSE:GCI) is up 5% after Q1 profits beat expectations despite declining nearly 6% on revenues that fell 8%.
- But "programs put in place to improve revenue trends are beginning to show positive results," says CEO Robert Dickey, pointing to a focus on "maximizing viewability and duration of ad play for advertisers, improving circulation retention, and maximizing national digital advertising opportunities and programmatic ad sales."
- EBITDA of $77.6M easily beat an expected $58.5M; EBITDA margin of 11.8% was up 186 basis points Y/Y.
- Revenue breakout: Advertising, $351.2M (down 11.6%); Circulation, $262.7M (down 3.2%); Other, $45.4M (down 6.9%).
- It reiterated full-year guidance (excluding impact of its acquisition of Journal Media Group): revenue trends to "improve over 2015" driven by digital growth; advertising revenues falling 5-7%, and circulation revenues dropping 2-4%. EBITDA margins staying under pressure short term; capex of $50M-$60M (excluding real estate).
- Gannett will update guidance incorporating the JMG acquisition along with second-quarter earnings.
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Conference call to begin at 1 p.m. ET.
- Press Release
- Now read Tribune Publishing's Alternative Plan To Gannett's Bid »