Gannett Inc. brought in $730.7 million in revenue in the fourth quarter of 2022, an 11.6% decline YoY.
But the quarter apparently was profitable, producing $32 million in net income, versus a $78 million net loss for the year. The firm expects $2.9 billion in revenue for the full year.
In addition, Gannett paid down $47.3 million of debt during the quarter. And it has increased its digital-only circulation revenues to $35.5 million, 28.6% growth YoY.
Gannett now has 2.03 million digital-only paid subscriptions. It also drew 179 million average monthly unique visitors in Q4,with 133 million average monthly unique visitors coming from the USA Today Network, it says.
The company had prioritized subscription growth over advertising monetization, but is now balancing that, Chairman and CEO Michael Reed said during a conference call Thursday morning. The company now seeks to monetize subscriptions not only through ad growth but through lower acquisition costs.
Describing USA Today as the “top destination in the U.S.,” Green said Gannett will seek to guide more people into the ecosystem, create bundles and build the sports side of the business.
Green also hailed the growth of Gannett’s solutions business revenue, which the financials put at $121.1 million, a 7’% rise YoY. He claimed a 95% retention rate in that sector.
The company premium channels grew from less than 1,000 users at launch in 2021 to 55,000. Green added.
In a statement referring to growth in adjusted EBITDA over the prior quarter, Green said, "This illustrates the effectiveness of our ongoing cost management program which has enabled us to navigate the near-term volatility and we believe will allow Gannett to realize its long-term growth goals."
Meanwhile, Gannett is projecting 2023 revenue of $2.75 billion to $2.8 billion, and net income ranging from a $20 million loss to $10 million in net income.