Gannett Posts 10.3% Decline in Q3 Revenue

Gannett suffered a 10.3% decline in Q3 revenue YoY to $717.9 million, and a $54.1 million net loss, compared to $14.7 million net income in the same quarter in 2021.  

However, despite a challenging macroeconomic environment, the firm moved toward stabilization in the third quarter, said CEO Mike Reed during an investor call Thursday morning. 

As the firm sees it, trends have not improved, nor have they declined.

The company also projects 12-month revenue of $2.9 billion to $3 billion, versus $3.2 billion in 2021. And, as announced earlier, it is looking at a net loss of $60 million to $70 million.

“We continue to execute on $200 million to $240 million in annualized cost savings through the implementation of temporary and permanent actions that are expected to give us near-term flexibility and allow us to continue forward towards the Company's digital transformation," said Reed.

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These measures presumably include the layoffs, buyouts and other cost reductions recently enacted. There was no announcement of further staff cuts. 

In addition, Gannet has paid $55 million of debt subsequent to Q2, and $130 million to date and is on track to pay $150 million to $220 million by end of 2022. It also has $90 million worth of real estate in various stages of the sales pipeline, Reed said. 

Reed added that Gannett “finished the third quarter with 1.98 million digital-only paid subscribers, growing 28.5% year-over-year, and during October, we accomplished an important milestone by surpassing 2.0 million digital-only paid subscribers.” This moves it to its "North Star" goal of digital transformation, he added. 

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