On November 2, 2023, Gannett Co Inc (GCI, Financial) released its financial results for the third quarter ended September 30, 2023. Despite a challenging operating environment, the company reported significant improvements in its bottom line and a reduction in net loss.
Financial Performance and Highlights
Gannett Co Inc (GCI, Financial) reported total revenues of $652.9 million, a decrease of 9.1% compared to the third quarter of 2022. However, the company's total digital revenues were $263.6 million, or 40.4% of total revenues, up 2.7% over the same period in the prior year. The company also reported a net loss attributable to Gannett of $2.6 million, an improvement of $51.5 million versus the net loss attributable to Gannett of $54.1 million in the third quarter of 2022.
Adjusted EBITDA totaled $59.5 million, an increase of 14.7% compared to the third quarter of 2022. The Adjusted EBITDA margin of 9.1% improved 190 basis points compared to the 7.2% Adjusted EBITDA margin in the third quarter of 2022. Cash provided by operating activities was $20.6 million, and free cash flow was $7.4 million.
Debt Repayment and Liquidity
In the third quarter, Gannett Co Inc (GCI, Financial) repaid $65 million of debt, which combined with its Adjusted EBITDA growth, reduced its first lien net leverage to below 2.0x. The company also maintained a strong liquidity position with $109 million of cash at the end of the third quarter.
Outlook
The company is adjusting its full year 2023 outlook with respect to revenues, net income (loss) attributable to Gannett, cash provided by operating activities, same store total revenues year-over-year, free cash flow, and Adjusted EBITDA. The company expects to end the year with overall revenue trend improvement, growth in both total digital revenues and Adjusted EBITDA, significant free cash flow generation, meaningful debt reduction, and first lien net leverage below 2.0x.
Conclusion
Despite a decrease in total revenues, Gannett Co Inc (GCI, Financial) has demonstrated resilience in a challenging operating environment, achieving significant improvements in its bottom line and a reduction in net loss. With a focus on digital revenue growth and debt repayment, the company is optimistic about creating sustainable growth and significant value for its shareholders.
Explore the complete 8-K earnings release (here) from Gannett Co Inc for further details.
