Gannett(GCI)2021-05-07 22:14Financial Data and Key Metrics Changes - First quarter total operating revenues were 100.5 million, up 142.3 million, which included a non-cash charge of 699.6 million, with print advertising revenue decreasing 24.9% year-over-year [41] - Digital advertising and marketing services revenues decreased 10.4% on a same-store basis [42] - Digital-only subscribers grew 37.2% year-over-year, reaching approximately 1.2 million, with digital-only subscriber revenue growing 46.3% [45] Market Data and Key Metrics Changes - Digital revenues accounted for approximately 30% of total revenue, while print advertising was less than 25% [18] - Circulation revenues decreased 12.9% compared to the prior year on a same-store basis [44] - The company experienced record audience metrics in Q1 of 2020, which impacted year-over-year comparisons [42] Company Strategy and Development Direction - The company is committed to a subscription-led digital business strategy, aiming for 10 million paid digital-only subscriptions in the next five years [20][65] - Five key pillars of the strategy include accelerating digital subscriber growth, driving digital marketing services growth, optimizing traditional businesses, prioritizing investments in growth businesses, and building an inclusive culture [20][35] - The company is exploring opportunities in the sports gaming sector and non-fungible tokens (NFTs) as new business avenues [30][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for continued sequential improvement in Q2, anticipating low to mid-single-digit total revenue growth and over 30% adjusted EBITDA growth [11][12] - The company is well-positioned for significant adjusted EBITDA growth for the full year 2021 compared to 2020 [12] - Management highlighted the importance of leveraging their media reach and trusted brands to drive digital offerings and create recurring revenue streams [70][71] Other Important Information - The company has refinanced its debt, lowering the overall cost of capital from 11.5% to about 7.17% [13] - The company ended the quarter with approximately 163.5 million [53][54] - The company received approval for approximately $16.2 million in PPP funding under the CARES Act [56] Q&A Session Summary Question: Digital circulation revenue and strategy execution - Management discussed initiatives to increase digital subscriptions, including consistent metering and best practices based on market geography [61][63] Question: Concentration of digital subscribers - The majority of digital subscribers are concentrated in the top 50 markets, not just the largest cities [66] Question: Balance sheet and debt repayment capacity - Management indicated significant debt paydown is expected by the end of the year, driven by asset sales and cash flow [67]