Gannett Co., Inc. (GCI) Bundle
A Brief History of Gannett Co., Inc.
Gannett Co., Inc. has evolved significantly since its inception, focusing on digital transformation while grappling with the challenges of the print media industry. As of 2024, Gannett continues to navigate a dynamic landscape, marked by fluctuating revenues and strategic restructuring.
Financial Performance Overview
For the nine months ended September 30, 2024, Gannett reported total revenues of $1.888 billion, a decrease from $1.994 billion for the same period in 2023. The breakdown of revenues for the third quarter of 2024 is as follows:
| Segment | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| Domestic Gannett Media | $468,511 | $508,505 |
| Newsquest | $59,548 | $59,035 |
| Digital Marketing Solutions | $119,929 | $121,919 |
| Corporate and Other | $1,431 | $1,532 |
| Total Revenues | $612,439 | $652,871 |
Operating costs for the same period totaled $375.9 million, down from $416.1 million in Q3 2023. Selling, general, and administrative expenses were $183.9 million, slightly decreased from $184.9 million year-over-year.
Net Income and Losses
Gannett reported a net loss of $19.7 million for Q3 2024, compared to a net loss of $2.6 million in Q3 2023. For the nine months ended September 30, 2024, the net loss attributable to Gannett was $90.7 million, a significant increase from a loss of $4.9 million in the prior year.
Debt and Financial Obligations
As of September 30, 2024, Gannett's total outstanding debt was $992.1 million, comprised of:
| Debt Type | Amount (in millions) |
|---|---|
| Senior Secured Term Loan | $293.6 |
| 2026 Senior Notes | $271.2 |
| 2027 Notes | $427.3 |
The company has been actively managing its debt, with interest expenses of $25.96 million for Q3 2024, down from $27.92 million in Q3 2023. Gannett's effective interest rate for the Senior Secured Term Loan was approximately 11.2% as of September 30, 2024.
Operational Changes and Strategic Initiatives
In 2024, Gannett executed several strategic initiatives aimed at enhancing its digital offerings and reducing operational costs. The company recorded integration and reorganization costs of $17.3 million for Q3 2024, reflecting ongoing efforts to streamline operations and adapt to market conditions.
Despite the challenges faced by the print media sector, Gannett's digital revenue streams have shown resilience, with digital revenues reaching $277.4 million in Q3 2024, a year-over-year increase from $263.6 million.
Key Performance Indicators
Gannett has focused on several key performance indicators (KPIs) to gauge its operational effectiveness:
| KPI | Q3 2024 | Q3 2023 |
|---|---|---|
| Digital-only ARPU | $8.16 | $6.82 |
| Core platform ARPU | $2,777 | $2,636 |
| Digital-only paid subscriptions | 1,953,000 | 1,889,000 |
These metrics highlight Gannett's focus on digital growth, evidenced by a 20% increase in digital-only ARPU.
Conclusion of Financial Overview
As Gannett Co., Inc. continues to adapt to the evolving media landscape in 2024, its financial performance reflects both the challenges of traditional media and the opportunities within digital realms.
A Who Owns Gannett Co., Inc. (GCI)
Ownership Structure
As of 2024, Gannett Co., Inc. (GCI) has a diverse ownership structure that includes institutional investors, mutual funds, and individual shareholders. The largest shareholders are typically institutional investors, which hold a significant portion of the company's outstanding shares.
| Shareholder Type | Percentage Ownership |
|---|---|
| Institutional Investors | Approximately 80% |
| Mutual Funds | Approximately 10% |
| Individual Shareholders | Approximately 10% |
Major Institutional Shareholders
Major institutional shareholders of Gannett Co., Inc. as of 2024 include the following:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 15,800,000 | 9.93% |
| BlackRock, Inc. | 14,500,000 | 9.35% |
| State Street Corporation | 10,200,000 | 6.58% |
| Invesco Ltd. | 5,600,000 | 3.61% |
| Dimensional Fund Advisors LP | 4,800,000 | 3.11% |
Recent Shareholder Changes
In recent years, Gannett has experienced changes in its shareholder base, particularly with the rise of passive investment strategies. The following table outlines notable changes in shareholder percentages over the past year:
| Institution | Change in Ownership (%) | Date of Change |
|---|---|---|
| The Vanguard Group, Inc. | +1.5% | March 2024 |
| BlackRock, Inc. | -0.5% | March 2024 |
| State Street Corporation | +0.8% | March 2024 |
Stock Performance and Market Capitalization
As of early 2024, Gannett's stock price is approximately $3.20 per share. The company's market capitalization is approximately $500 million, reflecting its financial performance and investor sentiment.
| Metric | Value |
|---|---|
| Current Stock Price | $3.20 |
| Market Capitalization | $500 million |
| 52-Week High | $5.50 |
| 52-Week Low | $2.00 |
Financial Performance Indicators
Gannett's financial performance indicators as of September 30, 2024, are as follows:
| Indicator | Value |
|---|---|
| Total Revenues | $1.888 billion |
| Net Loss | $(90.7 million) |
| Earnings Per Share (EPS) | $(0.64) |
| Adjusted EBITDA | $195 million |
Conclusion on Ownership Dynamics
Gannett Co., Inc. continues to evolve under the influence of its major institutional shareholders, with significant focus on digital transformation and operational efficiency to enhance shareholder value.
Gannett Co., Inc. (GCI) Mission Statement
Company Overview
Gannett Co., Inc. is a diversified media company that operates various media brands and digital marketing solutions. The company aims to empower communities by providing essential content and marketing solutions tailored to local audiences.
Mission Statement
Gannett's mission is to inspire, inform, and connect audiences as a sustainable, growth-focused media and digital marketing solutions company. This mission reflects their commitment to delivering essential content and experiences for curated audiences, advertisers, consumers, and stakeholders.
Core Values
- Integrity: Upholding transparency and honesty in all operations.
- Innovation: Leveraging technology to enhance digital marketing solutions.
- Community Engagement: Actively participating in and contributing to local communities.
- Diversity and Inclusion: Fostering a diverse workforce that reflects the communities served.
Strategic Objectives
Gannett's strategic objectives focus on the evolution from traditional print media to a more comprehensive digital marketing approach. The company seeks to create shareholder value through:
- Organic growth driven by consumer and business-to-business strategies.
- Debt reduction to strengthen the capital structure.
- Investment in digital product development.
Financial Overview
As of September 30, 2024, Gannett reported significant financial metrics reflecting its operational performance:
| Financial Metric | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Total Revenues | $612.4 million | $652.9 million | -6% |
| Net Loss | $(19.7) million | $(2.6) million | ->100% |
| Adjusted EBITDA | $46.3 million | $40.7 million | +14% |
| Net Income Margin | (3.2)% | (0.4)% | - |
| Adjusted EBITDA Margin | 9.9% | 8.0% | +1.9% |
Market Position
Gannett operates through various segments, including:
- Domestic Gannett Media
- Newsquest (UK operations)
- Digital Marketing Solutions
The company has focused on enhancing its digital footprint, with digital revenues accounting for a significant portion of total revenues. For the nine months ended September 30, 2024, the breakdown of revenues was:
| Segment | Revenues (in millions) |
|---|---|
| Domestic Gannett Media | $1,456.1 |
| Newsquest | $181.0 |
| Digital Marketing Solutions | $360.8 |
| Total Revenues | $1,888.0 |
Conclusion of Financial Performance
Gannett continues to navigate a challenging media landscape while adapting its mission to meet the evolving needs of its audiences and stakeholders. The integration of digital solutions and a commitment to community engagement remain central to its operational strategy.
How Gannett Co., Inc. (GCI) Works
Overview of Operations
Gannett Co., Inc. (GCI) operates primarily in the media sector, focusing on digital and print media. The company generates revenue through various segments, including Gannett Media, Newsquest, and Digital Marketing Solutions (DMS).
Financial Performance
For the three months ended September 30, 2024, Gannett reported total revenues of $612.4 million, a decrease of 6% compared to $652.9 million for the same period in 2023. For the nine months ended September 30, 2024, total revenues were $1.888 billion, down 5% from $1.994 billion in 2023.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Total Revenues | $612.4 million | $652.9 million | $1.888 billion | $1.994 billion |
| Net Loss | $(19.7) million | $(2.6) million | $(90.7) million | $(5.0) million |
| Loss per Share (Basic) | $(0.14) | $(0.02) | $(0.64) | $(0.04) |
| Adjusted EBITDA | $62.9 million | $59.5 million | $195.0 million | $193.6 million |
Revenue Breakdown
Gannett's revenue streams are categorized into digital and print segments. Digital revenues for Q3 2024 were $277.4 million, a 5% increase from $263.6 million in Q3 2023. Print revenues decreased to $335.1 million, down 14% from $389.2 million in Q3 2023.
| Revenue Sources | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Digital Advertising | $84.7 million | $80.8 million | $253.7 million | $242.5 million |
| Digital Marketing Services | $119.6 million | $121.9 million | $360.8 million | $357.5 million |
| Digital-Only Subscriptions | $50.1 million | $40.0 million | $139.8 million | $113.7 million |
| Print Advertising | $123.9 million | $137.2 million | $397.5 million | $434.4 million |
| Print Circulation | $157.3 million | $187.1 million | $493.9 million | $588.3 million |
Operating Expenses
For Q3 2024, Gannett reported total operating expenses of $618.5 million, which was nearly unchanged from $617.9 million in Q3 2023. For the nine months ended September 30, 2024, operating expenses increased to $1.937 billion from $1.926 billion in the previous year.
| Operating Expenses | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Newsprint and Ink | $2.6 million | $3.1 million | $7.7 million | $10.6 million |
| Distribution | $3.3 million | $3.3 million | $9.6 million | $10.2 million |
| Compensation and Benefits | $13.5 million | $12.8 million | $39.4 million | $37.1 million |
| Outside Services | $3.9 million | $4.1 million | $11.5 million | $12.0 million |
| Other Operating Expenses | $6.7 million | $6.6 million | $23.9 million | $19.8 million |
Debt and Financial Obligations
As of September 30, 2024, Gannett's total debt was approximately $1.061 billion, with a significant portion associated with its Senior Secured Term Loan and 2026 Senior Notes. The effective interest rate for the Senior Secured Term Loan was 11.2%.
Key Performance Indicators
Gannett's Digital-only Average Revenue Per User (ARPU) showed a notable increase, reaching $8.16 for Q3 2024, compared to $6.82 in Q3 2023. The company also reported a total of 2.056 million digital-only paid subscriptions as of September 30, 2024, up from 1.964 million in the previous year.
| Key Performance Indicators | Q3 2024 | Q3 2023 |
|---|---|---|
| Digital-only ARPU | $8.16 | $6.82 |
| Total Digital-only Paid Subscriptions | 2.056 million | 1.964 million |
How Gannett Co., Inc. (GCI) Makes Money
Revenue Streams
Gannett Co., Inc. primarily generates revenue through various segments including Digital Advertising, Digital Marketing Solutions, Print Advertising, and Print Circulation.
| Revenue Source | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) | Change (%) |
|---|---|---|---|
| Digital Advertising | $84,742 | $80,758 | 5% |
| Digital Marketing Solutions | $119,576 | $121,891 | -2% |
| Digital-only Subscription | $50,055 | $40,039 | 25% |
| Print Advertising | $123,929 | $137,154 | -10% |
| Print Circulation | $157,295 | $187,065 | -16% |
| Commercial & Other | $53,829 | $65,008 | -17% |
| Total Revenues | $612,439 | $652,871 | -6% |
Digital Revenue Breakdown
Gannett's digital revenues are derived from diverse digital advertising offerings, including classified ads and display ads on its platforms and third-party sites. Additionally, revenues come from digital marketing services, which encompass search advertising, social media, and website development.
| Digital Revenue Type | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| Digital Advertising | $84,742 | $80,758 |
| Digital Marketing Services | $119,576 | $121,891 |
| Digital-only Subscription | $50,055 | $40,039 |
| Digital Other | $23,013 | $20,956 |
Print Revenue Breakdown
Print revenues are generated from local, national, and classified print advertising products, as well as from home delivery and single copy sales of Gannett's publications.
| Print Revenue Type | Q3 2024 Revenue (in thousands) | Q3 2023 Revenue (in thousands) |
|---|---|---|
| Print Advertising | $123,929 | $137,154 |
| Print Circulation | $157,295 | $187,065 |
| Commercial & Other | $53,829 | $65,008 |
Operating Expenses
Gannett's operating expenses consist of various costs including compensation, distribution, and newsprint costs, which impact overall profitability.
| Operating Expense Type | Q3 2024 Expense (in thousands) | Q3 2023 Expense (in thousands) |
|---|---|---|
| Newsprint and Ink | $2,605 | $3,089 |
| Distribution | $3,292 | $3,312 |
| Compensation and Benefits | $13,477 | $12,798 |
| Outside Services | $3,908 | $4,088 |
| Other | $6,744 | $6,558 |
| Total Operating Costs | $30,026 | $29,845 |
Net Loss and Earnings
For the third quarter of 2024, Gannett reported a net loss attributable to the company of $19,653 thousand, compared to a net loss of $2,566 thousand in Q3 2023. The loss per share attributable to Gannett was $(0.14) for Q3 2024, compared to $(0.02) in Q3 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Loss (in thousands) | $(19,653) | $(2,566) |
| Loss per Share - Basic | $(0.14) | $(0.02) |
| Loss per Share - Diluted | $(0.14) | $(0.02) |
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Article updated on 8 Nov 2024
Resources:
- Gannett Co., Inc. (GCI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Gannett Co., Inc. (GCI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Gannett Co., Inc. (GCI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.