Gannett Stock Slides As Q3 Revenue Miss Estimates

Gannett Co Inc GCI reported a third-quarter FY21 sales decline of 1.8% year-on-year, to $800.18 million, missing the analyst consensus of $817.60 million. Same-store revenues increased 0.9%.
Publishing revenues were $715.8 million, and Digital Marketing Solutions revenues were $116.77 million.
Advertising and marketing services revenues increased 1.7%, while Circulation revenues decreased 8.8%.
Total digital revenues improved 17.8% on a same-store basis. Digital-only circulation subscribers exceeded 1.5 million at the end of Q3, a 46% gain Y/Y.
Total operating expenses fell by 5.4% Y/Y to $769.1 million. The operating margin was 3.9%, and operating income for the quarter was $31.1 million.
Adjusted EBITDA increased 16% Y/Y to $102.1 million and represented a 12.8% margin, expanding 200 basis points.
EPS was $0.09, versus a loss of $(0.24) last year. The adjusted net income attributable to Gannett was $26.5 million.
"With digital revenue accounting for over one-third of total revenue and growing, we are excited about the Company's evolution to a digitally focused content platform and the early momentum of our subscription-led strategy," said Chairman and CEO Michael Reed.
Gannett held $141.3 million in cash and equivalents as of September 30, 2021. Net cash provided by operating activities for the quarter amounted to $40.8 million.
Price Action: GCI shares are trading lower by 7.22% at $5.84 on the last check Friday.