Financial Metrics Not Good For Gannett

Gannett Co., Inc. today reported first quarter 2017 results of operations.

Recent highlights include:

• GAAP net loss of $2.1 million; adjusted EBITDA of $69.7 million.
• Full Year adjusted EBITDA1 guidance range increased $30 million to $355 to $365 million.
• Total digital revenues were $234.7 million or 30.3% of operating revenue.
• Local U.S. markets reported second sequential quarter of same store digital advertising revenue growth, up 3.7% in the first quarter.
• Mobile digital advertising revenue (a component of digital advertising revenues) were up 39.2%.
• Digital-only subscriptions grew 72.6%; total digital only subscriptions, including acquisitions, are over 250,000.

Operating revenues for the first quarter were $773.5 million compared to $659.4 million in the prior year first quarter, an increase of $114.1 million or 17.3%. Excluding $11.4 million of unfavorable foreign currency exchange rate changes and $1.8 million of selected exited operations, revenues increased $127.2 million, or 19.3%. The increase in revenue was primarily attributable to acquisitions2 partially offset by ongoing declines in print advertising and circulation demand.

Robert J. Dickey, president and chief executive officer, said, "Operating performance in the first quarter of 2017 trended better than our original guidance, with seasonal softness in revenues early in the year more than offset by continuing cost improvements leading to better than expected adjusted EBITDA and strong cash flow from operating activities."