GCI - Gannett pops up 19% after reporting strong growth in Q4 digital-only segment

February, 23 2023 11:29 AM Gannett Co. Inc.

Gannett ( NYSE: GCI ) rallies 17% higher after beating its EPS estimates in Q4 earnings led by 24% growth in digital-only paid subscription growth to 2.03M and 29% increase in digital-only circulation revenues to $35.5M.
Digital marketing solutions core platform revenues stood at $119.7M (+9% Y/Y).
Total revenues dropped 11.6% to $730.7M led by same-store revenues decline of 10.3%.
"During Q4 the company continued to make significant progress against its strategic priorities and we ended 2022 with our highest quarterly adj. EBITDA for the year, resulting in significant sequential growth over the prior quarter," chairman & CEO Michael Reed commented.
Net income attributable to Gannett of $32.8M compared to net loss of $78M, an income margin of 4.5%; adjusted net income of $53.2M vs. net loss of $15.7M; adj. EBITDA narrowed 21.7% Y/Y to $90.4M while on sequential basis it increased 74.1%.
Meanwhile, adj. EBITDA margin expanded 520 basis points to 12.4%.
During Q4, the company repaid $47.3M and $146.6M in 2022; as of Dec.31, 2022, the company had cash and equivalents of $94.3M.
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