Gannett (GCI) Tops On Q4 Earnings, Revenues, Guides For FY18
Zacks Investment Research | Feb 19, 2018 09:56PM ET
Gannett Co., Inc. (NYSE:GCI) delivered better-than-expected fourth-quarter 2017 results. The diversified media conglomerate posted adjusted quarterly earnings of 55 cents a share that surpassed the Zacks Consensus Estimate of 47 cents and jumped 10% from 50 cents reported in the year-ago quarter.
The company gained from sturdy digital performance, particularly at ReachLocal and cost containment endeavors. These helped it to overcome tough print advertising trends. Management highlighted that it intends to focus on enhancing marketing solutions and consumer businesses going forward.
Shares of this McLean, Virginia based company have increased 38.1% in the past six months compared with the industry ’s growth of 33.3%.
Gannett’s total revenue of $854.2 million also came ahead of Zacks Consensus Estimate of $848.5 million but declined 1.5% from the prior-year quarter. On a same store basis, total operating revenue decreased 8.8% to $791 million. Lower print advertising and soft circulation revenues hurt the top line. These were partially offset by increased digital advertising revenue.
Advertising revenue fell 4.6% to $490.1 million, whereas circulation revenue inched up 0.5% to $299.4 million. Other operating revenue increased 16.7% to $64.8 million.
Adjusted EBITDA increased 2.2% to $132.7 million, while adjusted EBITDA margin expanded 50 basis points to 15.5%.
Segment Details
Publishing segment revenue came in at $764.8 million, down 3.2% from the prior year quarter. On a same-store basis, publishing segment operating revenue fell 10%. Print advertising and circulation revenues declined 18.5% and 6.7%, respectively, on a same-store basis. Digital advertising revenue grew 7.3% to $118.9 million. On a same store basis, the same improved 0.7%. Digital-only subscriber volumes surged 49.5% from the prior-year quarter and now total approximately 341,000.
ReachLocal segment revenue came in at $101.4 million during the quarter, reflecting an increase of 34.9% from the prior-year period. This came on the back of sturdy growth in North America and transition of the company’s clients onto the ReachLocal platform.
Gannett Co., Inc. Price, Consensus and EPS Surprise
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