Gannett's Q1 2025 Earnings Call: Contradictions Unfold on DOJ Case Impact, Asset Sales, and Digital Revenue Strategies

Google's DOJ case impact and Gannett's positioning, asset sales and revenue allocation, Google's monopolistic behavior and legal action, digital subscription revenue growth and strategic initiatives, digital advertising revenue trends are the key contradictions discussed in Gannett's latest 2025Q1 earnings call.



Revenue and Digital Performance:
- Gannett reported total operating revenues of $571.6 million for Q1 2025, a decrease of 10.1% or 7.7% on a same-store basis.
- Digital revenues were $250.4 million, down 6.4% or 3.8% on a same-store basis.
- The decline was attributed to softer trends in newsquest and DMS segments, increased revenue reversals, and the impact of Google's manual actions.

Free Cash Flow and Debt Reduction:
- Gannett's free cash flow for Q1 totaled $10.2 million, growing 7.6%.
- The company successfully reduced approximately $75 million in debt, lowering first lien net leverage.
- The improvements in cash flow and debt reduction were due to disciplined expense management and strategic asset sales.

Digital Audience Growth:
- Gannett's digital audience reached 195 million average monthly unique visitors, growing over 4% compared to the prior year.
- The increase in audience is attributed to a diversified digital strategy, enhanced content offerings, and deeper engagement through tools and technologies.

Structural Changes in Digital Advertising:
- Gannett anticipates a more favorable digital advertising ecosystem following the DOJ's ruling against Google.
- This ruling supports Gannett's ongoing lawsuit against Google and may lead to higher CPMs and stronger fill rates.
- The changes are expected to unlock higher revenue shares for publishers and better monetization of Gannett's advertising inventory.