GCI - Gannett shares rise after newspaper chain raises profit outlook

2023-08-03 15:42:23 ET

Shares of Gannett Co ( NYSE: GCI ), the largest U.S. newspaper chain, soared over 14% on Thursday after the company raised its full-year earnings expectations, signaling a rebound in advertising demand.

The publisher of USA today now expects between a loss of $10 million and profit of $20 million for 2023, compared to its earlier outlook between a loss of $15 million and a profit of $15 million.

"We expect sustained improvement in same store revenue trends throughout the second half of the year, alongside more substantial growth in our digital revenue trends," said CEO Michael Reed in a statement .

The company's digital subscription revenues grew 16.6% to $37.9 million.

The news publisher had sued Google ( GOOGL ) in June alleging that the search engine's control over tools for buying and selling online ads compelled publishers to sell ad space at lower prices to the Alphabet-owned company.

The company reaffirmed its revenue outlook of $2.75 billion to $2.80 billion for the year. Analysts on average expect full-year revenue of $2.74 billion.

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