Thu, May 1, 2:18 PM (21 days ago)
**Gannett Co., Inc. (GCI) Q1 2025 Financial Summary** **Financial Health & Performance:** - **Revenue:** $571.6M (down 10% YoY) - **Operating Income:** $9.8M (up from a loss of $49.9M in Q1 2024) - **Net Loss:** $7.3M (improved from a loss of $84.8M in Q1 2024) - **Cash Flow from Operations:** $23.3M (up from $22.5M in Q1 2024) **Profit Margins:** - **Operating Margin:** 1.7% (improved from -7.9% in Q1 2024) - **Net Margin:** -1.3% (improved from -13.3% in Q1 2024) **Cash Flow:** - **Operating Cash Flow:** $23.3M (up from $22.5M in Q1 2024) - **Investing Cash Flow:** $34.8M (up from -$12.4M in Q1 2024) - **Financing Cash Flow:** -$78.4M (up from -$18.2M in Q1 2024) **Earnings Changes:** - **EPS (Basic):** -$0.05 (improved from -$0.60 in Q1 2024) - **EPS (Diluted):** -$0.05 (improved from -$0.60 in Q1 2024) **Quarterly Performance:** - **Revenue Decline:** Digital (-6%), Print (-13%), Commercial (-18%) - **Operating Expenses:** Down 18% YoY - **Debt Repayment:** Prepaid $74.5M on 2029 Term Loan Facility **Trends & Uncertainties:** - **Print Revenue Decline:** Continued shift to digital platforms - **Macroeconomic Factors:** Inflation, interest rates, trade policies impacting advertising spend - **Debt Management:** Focus on reducing debt and generating consistent cash flow **Future Operations Impact:** - **Cost Reduction:** Ongoing initiatives to manage operating expenses - **Digital Focus:** Expanding digital audience and revenue streams - **Debt Repayment:** Continued focus on debt reduction and financial flexibility **Segment Performance:** - **Domestic Gannett Media:** Revenue down 11%, Operating Income up $17.9M - **Newsquest:** Revenue down 7%, Operating Income down 5% - **Digital Marketing Solutions (DMS):** Revenue down 7%, Operating Income down 48% - **Corporate and Other:** Revenue down, Operating Expenses down 62% **Debt Overview:** - **Total Debt:** $1.008B (down from $1.079B in Q1 2024) - **2029 Term Loan Facility:** $757.9M (down from $830.1M in Q1 2024) - **2031 Notes:** $216.2M (down from $215.9M in Q1 2024) - **2027 Notes:** $34.1M (down from $33.8M in Q1 2024) **Legal & Regulatory:** - **Google Lawsuit:** Ongoing action against Google for anticompetitive practices - **Oklahoma Lawsuit:** Appeal pending for a $25M judgment **Stock Repurchase Program:** - **Remaining Authorization:** $96.9M (as of Q1 2025) **Capital Expenditures:** - **2025 Forecast:** $45M (digital product development, print and technology systems) **Market Risks:** - **Currency Fluctuations:** Minor negative impact on revenues and profitability - **Interest Rates:** Potential impact on debt servicing costs **KPIs:** - **Digital-only ARPU:** Stable at $7.22 - **Core Platform ARPU:** Stable at $2,693 - **Digital-only Paid Subscriptions:** Down 4% YoY **Conclusion:** Gannett's Q1 2025 shows significant improvement in operating income and net loss, driven by cost reduction initiatives and a focus on digital revenue streams. However, the company continues to face challenges from declining print revenues and macroeconomic uncertainties. The focus remains on debt reduction, digital expansion, and operational efficiency.