Gannett Stock Gains As Q2 Revenue Tops Estimates

Gannett Co Inc GCI reported second-quarter FY21 revenue growth of 4.9% year-on-year, to $804.28 million, beating the analyst consensus of $791 million. Same store revenues increased 6.8%.
Publishing revenues were $724.54 million, and Digital Marketing Solutions revenues were $110.04 million.
Advertising and marketing services revenues increased 17.7%, while Circulation revenues declined 9.5%.
Digital revenues rose 33%, and Digital Marketing Solutions revenue improved 21.5% over the prior year same store.
Digital-only circulation subscribers totaled about 1.4 million at the end of Q2, a 41% gain Y/Y.
Operating expenses fell by 37% Y/Y to $758.8 million.
The operating margin was 5.7%, and operating income for the quarter was $45.44 million.
Adjusted EBITDA increased 48.4% Y/Y to $115.8 million and represented a 14.4% margin.
EPS was $0.10, versus a loss of $(3.32) last year.
"With digital revenues making up approximately one-third of our total revenue and growing, we believe we are well-positioned for the second half of the year and beyond," said CEO Michael Reed.
The company held $186.14 million in cash and equivalents as of June 30, 2021. Net cash provided by operating activities for the six months amounted to $92.5 million.
Price action: GCI shares are trading higher by 10.4% at $6.125 on the last check Friday.

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