Gannett Co., Inc. (NYSE:GCI) Q2 2023 Earnings Call Transcript

While cash provided by operating activities is expected to be in the range of $130 million to $150 million. Before wrapping up, I just want to reiterate how excited we are about the progress we’ve made and the Company’s performance in Q2. The first half of 2023 closed with remarkable momentum, and we are entering the second half of the year with a great deal of optimism. Our unwavering focus is on sustaining these positive trends throughout 2023 and into 2024 as we continue to transform Gannett and in turn, create meaningful value for the Company’s stakeholders. I’ll now hand it back to the operator for questions, and then we will go back to Mike for some closing thoughts.

Mike Reed: Okay. Great. Thank you. So I’m incredibly proud of the strong performance we achieved in the second quarter and really the first half of the year. The unwavering focus and dedication of the team here at Gannett has led to a high level of operating performance this year, resulting in solid financial results. We believe, we are in a favorable position, as you’ve heard this morning, as we move into the second half of the year backed by a number of catalysts. Let me do a quick review — a quick review of a few of those catalysts, achieving significant adjusted EBITDA and free cash flow growth, driving digital revenue growth, now approximately 40% of our total revenue and that percentage will keep going up, improving same-store revenue trends on a sequential basis.

Sustaining growth in our digital-only subscription revenues while increasing digital-only ARPU through a renewed content strategy and revitalized focus on local markets, achieving record highs in DMS core platform revenue and ARPU, while sustaining strong adjusted EBITDA, rapid deleveraging through adjusted EBITDA growth and debt repayment, and finally, adding four dynamic leaders to our business in Kristin Roberts, MTS Patel, Jason Taller and Chris Joe. With these catalysts driving us forward we are excited and confident about the opportunities that lie ahead. The remarkable progress achieved during Q2 fills us with pride and we are determined to continue delivering solid results and unlocking significant shareholder value throughout the remainder of 2023 and of course, beyond.

Thanks, everyone, for joining us today. We look forward to updating you again in three months on our progress in the third quarter. Thank you.

Operator: Thank you very much, sir. Ladies and gentlemen, this concludes today’s teleconference. You may disconnect your lines at this time. Thank you for your participation.