Gannett’s stock tumbles 10% after revenue falls short of estimates. Digital revenue rose 6.2% to account for 44% of all revenue.

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Gannett Co. Inc.’s stock shed early losses to trade down 10% Thursday, after the USA TODAY publisher’s second-quarter revenue fell short of expectations, offsetting profit that beat by a wide margin.

The company had net income of $13.7 million, or 9 cents a share, for the quarter, after a loss of $12.7 million, or 9 cents a share, in the year-earlier period. Revenue fell to $639.8 million from $672.4 million a year ago.

The FactSet consensus was for EPS to be breakeven and revenue of $645.0 million.

“Midway through 2024 we are on track with our operating plans and believe we are well-positioned to continue this positive momentum for the balance of the year,” CEO Michael Reed said in prepared remarks.

Digital revenue rose 6.2% to $278.4 million in the period to account for 44% of total revenue. Digital-only subscription revenue rose 22.3% to $46.3 million in the quarter, while digital ad revenue rose 3.6% to $84.5 million. Average revenue per user was also up about 20%.

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