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Gannett (GCI)

Participants
Stacy Cunningham Vice President, Financial Planning and Investor Relations
Bob Dickey President & Chief Executive Officer
Sharon Rowlands President, USA TODAY NETWORK Marketing Solutions and CEO, ReachLocal
Alison Engel CFO & Treasurer
Maribel Wadsworth President, USA TODAY NETWORK and Publisher of USA TODAY
Barbara Wall Senior Vice President & Chief Legal Officer
Michael Kupinski NOBLE Capital Markets
Kyle Evans Stephens Inc.
Doug Arthur Huber Research Partners
Call transcript
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Operator

Good day, ladies and gentlemen and welcome to the Q2 2018 Gannett Company Earnings Conference Call. At this time all participants are in a listen-only mode. Later we will conduct a question-and-answer session and instructions will be given at that time. [Operator Instructions].

As a reminder, this conference may be recorded. to Financial conference Stacy Planning like host, to Cunningham. now President, Vice and would turn over the your I Investor Relations, Ma'am, begin. you may

Stacy Cunningham

Second Call. Good XXXX you. morning and to Thank everyone, Earnings Gannett's Conference welcome Quarter

As a is call reminder, being recorded. this

Bob NETWORK, Gannett Officer; Chief Chief ReachLocal. Officer Marketing and Solutions Joining Officer; and President Rowlands, Engel, President of are and today Chief Dickey, us of Financial Sharon from Executive Ali USA TODAY Executive

Harbor provision we Safe attention statements. Safe from Before forward-looking factors our I to financial actual our materially to would Harbor cause contents to results risk The forward-looking your call for results begin, like identifies that release. in may of the differ statements our press provision

our our and financial refer press between this results, financial be website and results at more Also, which SEC available Form will our conference and our to include Investor also please Relations we non-GAAP measures. Investor risk a For reported release, the non-GAAP is website. being description affect our call of to release results Relations have press through detailed the including management's commentary during metrics found tables the investors.gannett.com. our XX-K. results can is Reconciliations our for posted financial filings, call, XXXX may factors GAAP of webcast in that This

to With these Dickey. Bob over to formalities call out of the the like way, I'd turn now

Bob Dickey

Stacy. Thanks,

ReachLocal digital will transformation I'll start to highlights our organizations. solid financial Ali some pleased are consumer it by quarter, second and that are our update progress for with the results. an then you We with our from of from giving quarter to on Sharon solutions over our and evidence execution going detailed conclude I’m and turn marketing results

comprised threshold the later services segment continues and As XX% digital steady client our revenues media expected, the in in expectations cross by our and We our of delivered national marketing increased benefit ahead services to the services the had advertising growth; across as quarter total business quarter, we scale growth digital in led revenues our marketing this and marketing should margin categories. base. and services marketing XX% year. advertising broader advertising revenues local are and Digital of XX% solid from ReachLocal and showing a digital the

While growth XXXX. was our remains And print with our advertising challenged, ramp half organization first to engagement. XXXX business consumer we the half second traffic of continue and of within audience performance the consistent

with Our last are initiative subscriber that September full most deliver in began results in pricing expectations. that line access recent continues to of year

were On our to and X WordStream Gannett. advertising markets, WordStream to the front, very The about with and marketing to and with drive help digital of combined will to solutions marketing the the the a local range agencies We our us enable remain of data-driven market. ReachLocal growth comprehensive, intelligent, digital solutions M&A we full local growing excited solutions in in services businesses the opportunity marketing and large solutions. provide pleased do-it-yourself close acquisition and WordStream’s July addition software-as-a-service team on welcome

advertising in the adjusted year to our the start guidance, our strong in momentum of Ali EBITDA acquisition and continued year which we're raising detail. full to digital revenues Given will the be pleased the discuss with WordStream, and more

with you results strong solutions marketing marketing Now sales we consumer very continue initiatives our realign digital within solutions. I'd and update our delivered key structure. The like as the team to to on Starting organizations.

organizational leadership local and we completed the pre-sales the a in sales as front, reminder changes. QX, On

in Overall, and majority some been our clients. headcount have appropriate quarter, sales to resulted During for additional migrated savings the our annualized rationalizing we of of reductions center large a the on now about has $XX second SMB smallest cost million. We post-sales organization and setting channels. focused call an up made sales our transformation accounts

we As that of sales solutions the are we packages second Gannett’s on broad-base creating year, the half and the assets. leverage focused of technology look to and data

We There's sales focus clear are and specific pre processes. will segments streamlined and client post position confident a more better on our transformation sellers. our

SMB service We are a fit churn will call digital center which packages accounts markets. ReachLocal’s our of particularly of reduce accounts opportunity, excited capture leverage believe in in significantly our more local share that starter offer to products. about These help perfect suite the we marketing smallest dollars and are digital

focused such we growth in with is On in while in the double ads content, digit audiences. digital sponsorship. also media delivering content new by The allow strong video, advances and partnership reach to reported front, allowing impact strong that us display, year-over-year branded the revenues will high on Twitter team national half, with fueled sell video our us against opportunities second as new the to digital

audience the impressive of we Turning to consumer another organization, growth. quarter had

Our unique year-over-year, comScore were XXX up XX% averaging million.

operated experiencing on as both partnerships App, distributed with content News, sites, are as strong growth via and well Apple MSN and Video We very our our owned Google YouTube. mobile

also focused are social across audience We on channels. growing

views our and X inspiring franchise; stories video Facebook members of of quarter, per XXX million XX across over other TODAY an Militarykind or the joins submissions. million episode. social of the U.S. NETWORK gain Animalkind. the our from Militarykind, followers, video Forces Militarykind via shares During user kind which USA launched with average Armed views third we million video quickly sourced and brands, Humankind

is mid-roll Kind the Given revenue across are the Facebook, of strong we seeing which engagement, video on generating encouraging. length portfolio, are very we

that mobile year-over-year out and We better, or channels. social depth properties. In views. the audience mobile B part, local in [ph]. according video with of times are we all mobile we're the rolled stronger also growth year-over-year year-over-year to seeing growth, XXX group continued the very devices XX% our our load benchmarks mobile in the network, increased and Overall, progress XX% in spent in Across on engagement across time and competitive scroll beating we pleased half quarter, cut Chart important addition to seeing now are across websites new increased reflecting we

at and A&E's niche Strategy Finally, growing such where to of drive of strong just and a transition will Kate the served passion help She Networks experiences brands the highlight Kate as she Digital as report Reviewed.com Kate will our multi-platform for on Vice new was Media to consumer focused Falls, kind expanding want I responsible directly franchises transformation business. important previously brands. TODAY to leading I the addition digital revenue will passion brand. beyond USA International, our brands innovation and organization, our portfolio local Great and will growing President our oversee and referenced content entertainment experience digital who’s company's consumer an to Gutman, be and and our for A&E and Maribel. of

of highlights another quarter. just Gannet. We have her are for for recruiting With thrilled me turn let Sharon to the Kate are we onboard. the to talent to ReachLocal it that, is example over

Sharon Rowlands

quarter, you, and another strong marked solid delivered product acquisition We by the impressive Thank pipeline and Bob. WordStream. execution of

quarter we as milestone advertising solutions scale combination and capabilities X% and digital is double experienced of sequential year-on-year. across its we achieve by growth and business. with This ReachLocal XX% grew to quarter significant ReachLocal with two, we growth. growth digit delivered the Gannett. XX% and Within quarter subscription the highlights realized created our advertising growth the a reached display XX% In the solutions the of strongest revenue video enhanced continuing industry. EBITDA value year-on-year business solution This strong grew key Digital year-on-year and display areas launch adjusted

client per American client North client year-on-year. revenue grew our importantly and product While, steady, grew base XX% units held per XX% year-on-year

year added such increasing and large clients as marketing our of their year-on-year financial the we Hut XX,XXX our see for to to SweetIQ institution. National the on new grew pleased client in acquisition. We’re Pizza focus spend budget clients renewing new and platform Midwest large locations Trust, on our Bank a and several & Australia City second half XX% on

digital be will management clients. channel, listing store our to We’re predictive we see for the technology algorithms and to bundle delivered of of drive our making continued reputational behavior front year. through will which emerging data growth projects machine campaign and reporting leveraging enhance and and launch increase the our the client we as learning. improvements number to we strides a team, that three We're live optimization solutions modeling From ROI Quarter such marketing use on Gannet voice in SweetIQ to the expect expect performance development science and the half in location a volume impactful. go across of the to new field the second enhancing

dynamically and range will solution bring team ad Our which innovative to tactics level ad client's of with achieve targeting smart, local of to goals. across enterprise This using to media each machine utilize solution, and strategy sophistication launch overall learning our is multiple solutions will consistent businesses. marketing an our solutions social types

our appropriate of supply launch initial the and uses builder out begun data about excited very sales we’re that quarter, budget search last our We've mentioned intelligence budget predictive As tool. to recommend [ph] new insights campaigns. rolling

we next During sales QX, be major will rolling tool. release of our the

Our across an analysis capabilities. lead of digital a web business’s platform footprint will generation its digital instant do advertising and presence,

a to this expect large sales of be driver We productivity. force

the the milestone It marketing spread agencies operates WordStream in in WordStream to to solutions very Gannett’s part do-it-for-me the July [ph] FMB of key group. of Another local. in was this each and do-it-yourself and closing on Xnd. predominantly is complementary quarter fully acquisition large to the now

client through a as this an software As have strong has a with organization. addressable we value have combined great our team, reputation innovative our tremendous They experience. bring to will also result, which market company very effectively a management doubled acquisition. tremendous WordStream

SweetIQ WordStream of base. client key While we’re such in as selling into listing of and the management early we're about review synergistic and excited prospect the integration, stages opportunities capabilities

Going reporting ReachLocal WordStream’s segments. our forward, results we’ll be in

ReachLocal, which have to the two, our expected Finally, sale quarter to closed and during we signed three. Japanese in Germany business an sell business, agreement our close of is quarter

run advanced progress the markets, with Ali. Germany is Japan, be as a of to establishing XX and approximately strategy local call across half ourselves U.K. to are on EBITDA into WordStream, adjusted to for We've In the and will the transforming With to made focus had we over The range negligible. is we're much the ever, Gannett local digital Australia Americas, power revenue turn and the impact organization. solutions, our solutions house the of let stronger the solidly XXXX, million, in me more annualized but that, New rate full than marketplace. be closing, second the Our year Zealand. and

Alison Engel

morning Thank you, everyone. good and Sharon

are continued as, as start. with We cost strong year-over-year driven quarter, revenue services our housekeeping quick growth, Two digital by pleased management. earnings demonstrated marketing advertising to which and items growth, well second

of First, day our the adjustments quarter. quarter so XXXX, are this had days second quarter there XX second of as XXXX not did any

renamed revenues. better to and category, have advertising we advertising analyze reflect business-to-business our marketing our we services Second, revenue how

$X about in website million was and $XX primarily ago. development marketing services recategorized million was in other the SweetIQs offerings and and revenue from about year advertising for revenue subscription current our SCO such, a based the services. software into services location As revenue, and This related revenue such revenue services, period

second quarter the let's challenge our on decline to print to results. Now digital Consolidated reflects second The services $XXX marketing by and focus revenues in environment, copy our XXXX. revenue quarter advertising partially the and of million growth. million offset $XXX revenue were compared circulation advertising single

We few from Our a the reflecting Total acquisition. declined in secular and year-over-year, facility grew distribution total These with totaled segment, from full and and same-store the X.X% operating second quarter, year XX% subscriber digital marketing represented of addition access offset print total X.X% to ReachLocal $XX associated revenues a basis, in were X% savings, and a decline. million revenues their part $XXX revenues. expenses EBITDA revenue higher pricing in quarter, expenses. quarter quarter pressures the by approximately offset able expenses our consolidation and XX% were cost million, lower of to and initiatives, first Total On same-store digital reductions with production SweetIQ for consistent higher fell acquisition due Adjusted X% to up the up growth, benefits the at advertising reductions. publishing year. with last in ago. services revenue, payroll the

momentum continued X.X% we in digital, Turning on marketing which consistent very the first increased a publishing the levels. advertising segment, the our services quarter with revenues, pleased saw in quarter to same-store we basis, were with and

growth a weakness some economy domestic operations, by revenues the our the up as fastest services challenged. in marketing experienced our on Digital U.K. year-over-year basis. XX% Our operations quarter, faster, Newsquest grew same-store even offset remains at

to revenue to as drive average for to the growth higher X.X count our have helping see of is continue in per in second are in client products launch our a from very both revenues quarter showing last digital X.X, X.X% which and We premium of include Advertising national had the branded strong video, our content, increases Categories key year, sales, time Since unit. solutions we ARPU. client average basis seeing across of results number grown Within and strength technology particular programmatic we a telecom. wins. where performance financial, media channel. and as, display same-store impact include; our grew showing on well with several strong high

On sped by ads the we up owned high with side, XX%. that and the improved XX% to operated improved enhancements advertising mobile of and call impact advertising product our viewability the delivery performance

Finally, programmatic CPMs continued by grew year-over-year, optimization step. programmatic our driven XX% of

packages late As expected, that some and negatively pricing marketing weakest, new The impact rolled and category results. were digital improvement although to advertising the did show employment the out. classifieds our digital continue services we with is overall quarter in

a advertising Same-store in digital revenues decline, first XX.X% fell same-store on largely services you If than were advertising XX% and of quarter print Easter shift our between exclude marketing worse quarter were classifieds, up in quarters. quarter. reflecting the basis revenues the digital to the

half Looking half XXXX. the Easter year the declines saw with at to the isolate the second in of we of the impact consistent quarters, fell print revenues first advertising XX.X%, same-store between

circulation, to see down also saw largest to declines X% and quarter national from some trends. our our with We some Newsquest. consistent at were incremental continue first advertisers trends preprint around weakness same-store the revenue of Switching

was and our that aggressively were third quarter social as markets and subscribers. view hitting up Digital markets in our are revenues new are we Single pricing we meters. access USA with U.S. result circulation users local local the off as content robust search remain pay trends targeting the copy Our a closed allowing expected. X% best the year-over-year, down Early TODAY most subscriber side in we XX% weak volume as our delivering both without growth only traffic results digital initiatives. at within to quarter, channels from only door full of

change adjusted at migrated quarter it scaling was revenue to seen While subscriptions, XX% strong revenue, digital driven since of sale of see and ReachLocal’s unprofitable Gannett and we Germany, second early, quarter clients EBITDA pleased not growth. the digit we the second is increase page driven $XXX in reach seen the ahead continued of core our We're the ReachLocal which our impact last making slightly material up year-over-year, our In of XX%, margins a have revenue reached performance by still organic a views. million, marked have by and expectations, double platform year. segment,

the our year, last Gannett up the with negatively was Additionally margin impacted by costs, clients. of ramp some migrating associated

as, Germany the GAAP Our reflecting sale income a ReachLocal depreciation million. $XXX,XXX This ago, as year $XX was and well includes facility from restructuring net million, also consolidation amortization. the gain up materially a of of for lower lower on of and costs, $X.X loss quarter a

Xnd. the convertible We million the on at revolver including interest related Turning our to in closing $XXX estimate WordStream million our million transaction. rest of ended $X quarter the expense to debt, on the and July million balance the revolver. an quarter in acquisition sheet, $XXX on end drawn of incremental in we drew $XXX on debt the We the XXXX of with for anticipation the

the of our This the Form a changing price function is XX-Q filed to consumer front, retail pension plan. index, today, reduction million in index pension pay liability, pension inflation related see On participants our our to the to $XXX which later you index. is prices when used Newsquest is reduction will the the from

totaled obligations. million also our There quarter, new in We investments from paid higher and supporting our this part that and such as pension as the expenditures product and negotiations slightly repurchased for are GAAP digital included our was authorities, well development, to pension upon the the changed previous a second in dividends. which Capital $XX ongoing a million for projects U.K. no we share is on were reflecting remeasured position. related contributions quarter $XX consolidations. with agreed our as, of plan surplus fees plan basis, now As Newsquest index

our Turning outlook. year full to

$XXX to outlook We $X.XX to $X are and revenue raising our $XXX EBITDA to our raising guidance billion million adjusted to billion million.

adjusted WordStream the expect $X in approximately in $XX to of million half We revenue EBITDA in second year. million and the contribute

than EBITDA we anticipating that higher in are better results. expected the first half will prices adjusted half year, results While the second were impact of newsprint our

with recent pleased are scale tariffs commerce announcement the We by department the to that newsprint of the have back impacted some pricing.

our was However, purchased prior the strong on second need we and still will which announcement. that digital we services inventory, continued year. of momentum, our expect throughout growth Based through advertising marketing cycle the in half current revenues to to

third to therefore the for quarter turn will six operator in fourth better compared additional back year, reminder, less compared have I as to and be questions. day you. fourth last that, have a to will anticipate our will and our With to trends quarter as quarter. days the quarter Finally one Thank third year-over-year it the

Operator

question first Our a comes NOBLE Kupinski of Michael line Instructions] Markets. [Operator Capital of from

is open. line Your

Michael Kupinski

if give from questions. happen thanks sold quarter, was and ReachLocal of then revenue the the of that kind me talk the does But And in our about flavor of on decline please you go there can sequential for bit back quarter and you. taking the little going that first what's as again? so wondering and rate Germany growth Thank I a forth. to in you a

Sharon Rowlands

got ReachLocal have Yeah, essentially the it onto to off ReachLocal We the of and clients. now rate of pretty clients growth the of organic Gannett and with ReachLocal consistent is the the Gannett on - migration the to of then you the do Gannett clients growth with the really cycling cycling platform. those

Michael Kupinski

Got you.

good second into a as like year then? it the is we kind the of And half of runway so that go

Sharon Rowlands

It is.

a I XX% growth think XX% of base scratched the tremendous down see sort expect to as surface penetration be opportunity, of the of segment. sort we I really new do client to able the sales rate digital think on them range. We we a of to the Gannett just expecting acquisition still and consistent get more bed their and onto organization We platform. focused lot we're

Michael Kupinski

you again you. how account did And remind me can Got much revenue Germany --? for

Sharon Rowlands

year $XX On a run million rate. basis full approximately

Michael Kupinski

Okay. --? Then

Sharon Rowlands

think, basis, together about that. an million, and it no from EBITDA on is sorry, but I annualized Germany So, XX Japan

Michael Kupinski

sold the Got begin should cycling those right? in were -- in And Is and you. third quarter. that that

Sharon Rowlands

in will point close two acquisition German Japan back quarter closed and the Well, end. some the towards in three at likely quarter

Michael Kupinski

And WordStream that indicated of fall half, million XX to second QX, you. the acquisition, million for then XX terms QX Got XX the like you to respectively? in is tend million, and

Sharon Rowlands

That’s about right.

Michael Kupinski

if And legislation then if California or Okay. this, but even see you in any guys data. terms on impact of you, in I could there's benefit, terms regarding that? on haven't personal way one there was Maybe another. but into wondering -- through uses that of comments you any the of have to gone I a Have looked be

Barbara Wall

California into the discussions the a is progress to here state the like if that privacy no time this statute. And Wall seen Legal happens this possibility California of Street company; reasons you until not Wall, week on. the in Journal Barbara may XXXX. effect that reports preempt Chief speculation the earlier And for there the due it's which So, familiar are that to Officer has we are about long have on is Washington of legislation, the go with will the legislation, there be one legislation, been

it closely. it's expect impact don't very -- in shifting think short-term. we’re landscape, We it's I any the a So, following very a

Michael Kupinski

That’s Great. you. all Thank I have.

Operator

Evans comes question of Kyle from Incorporated. Stephens next Our

Your open. line is

Kyle Evans

please. volume repetitive have unpacked ask know to pricing my I unit You and circulation

Bob Dickey

give Maribel some will be you color.

Maribel Wadsworth

Kyle. absolutely Sure,

the So, your by consistency, and for thanks way.

again see XX% strategy expectations. the as consistent to pricing in which seeing our high our to very We're results from to is continue date. range, with teens we So, our expected yield

to perfectly mid-teens, our days advertising of than volume bit choosing on our X% but and seeing are ticked little decline where tied high that downgrade some align pricing volumes, we're also the Our to up We're declines volume volumes of subscribers our Sunday daily week some of leadership. expected with [ph] more are as to our have the as both is intended lower a which impacted pricing. concentration estimating key that's frequency to dollars emphasis our a delivery, to X% strategy, of have we to and put specifically

Kyle Evans

looking you be just second do me squinting future help out in price your what And the Great. base you of half increases? for and asked from about, of consumer terms kind might year this absolute think of and

Maribel Wadsworth

the few second Sure. a looking based the the Absolutely. little year, is better We're of or half see circulation bit to a than overall first factors. which half on

of have in the benefit year. from course, started last you continued September of First, pricing late the we

in half further well really success with good has we're we’ve in of so the additional special that. subscribers some we're Second, of year adding and positively and introduction some for seen some pricing to gaining received very the section of and advantage take been the our back that as

subscribers be pricing on We less. paying additional will those focused subscribers really also on a smaller doing some of are today base who

Kyle Evans

Gannett Got for jump bit, the ReachLocal clients of a around here on in may to Where that. completion you. are percent migrating we Thank on I little basis? a you apologize. terms I

Sharon Rowlands

We complete. XXX% are

Kyle Evans

There we go.

Sharon Rowlands

completed all was That year. last

Kyle Evans

mention hit it you think terms the the hit you in on the the increases. mention year Then you out did pricing half of figure of the model, the model call Okay. of us a and that little in help that how please? when roll-through no back newsprint model will the tariff it how Can in bit and the the release,

Alison Engel

at other guidance think to based the that we've purchased that we about given things. prices the shows what we now XX%. what we've obviously I through Well, on second we’ve up half But our price be might offset pay in

then and anxiously in really So, this for can August of us waiting very rest will tariffs XXth the where impact fall XXXX and the the ITC how we beyond. understand to ruling we're out see

very positively that. we're So, to looking forward

we over X% to what the it very through I said months. job seven we've right are seeing managing where forward of of eight this and pleased difficult we’ve and environment look a our done as month. good later months, about past cost with happens We're think now Newsprint been base very what's makes a

Kyle Evans

to those lighting specific in products, largely itself that you’ve cost There's et our be used offset in newsprint XX% price cetera. increase. Which way providers would to the that of changing terms of

Alison Engel

I go we've our don't don't I and any on much Kyle, with mechanisms, I we that consistent to the all we pricing lighter lightened have we’ve consumers not taken to weight, think much other we're done of what changed product very because think lower to we've in doing. really that done things other need actions and would been say we've distribution we've previously can be what providing cut we're services, so costs production other through our just cost areas, offset, those we've costs, done professional lower costs. to head count that lower

Kyle Evans

the Got down print at give it. XX% kind pieces instead just the you looking lastly, first unpack Easter XXXX. affected, of of and half Could look let's And there me at on those the segmented with of rates? growth

Alison Engel

on out me. hang Stacy Yeah, is for pulling that

right a table the you at press have and release, can If the category the of table of the be that bunch as should off but the Don't gives you is national you followed for, then by a [ph] gives head, see my [indiscernible] that top look on you give you classifieds. will now, local quarter. directionally, same the there for

Kyle Evans

okay do the but Thanks. of well, that we pieces maybe like, Okay, local offline. can

Bob Dickey

preprints versus breakup --? [indiscernible]

Kyle Evans

am. I yes, Yes,

Sharon Rowlands

Kyle, more offline, you, do we’ll a little you that. breakdown if on that, give let’s Yeah,

Kyle Evans

Great. you. Thank it. Appreciate

Sharon Rowlands

Sure.

Operator

Research. Huber Our Instructions] Arthur line next Doug of [Operator from question comes the of

open. is line Your

Doug Arthur

figure release levers to at growth. Bob need What the millions. strong into count, XXX,XXX when subscriber you do said I the digital-only look pull you to think Yeah this get thanks. press that

on I I Sunday print think remember. think a basis your is over as million XX circulation I

So, the there. audience obviously is

Bob Dickey

[indiscernible]? that million, readers like side. million Our print the Sunday circulation more is on XX is X.X

Doug Arthur

That figure I was looking the at. was

tons big realize a a tougher audience it You like national than higher, and is sell paper. should that the seems that time to paper of obviously, I newspapers, it get be local number it -- it's But just tons or is is higher? side the figure marketing have and digitally on

Bob Dickey

XX%, happy we the Well, your I growth. we're point, with mean, have to

that To goals have our but we over some but and aggressive just very XX things meters, team doors months, the our to we has seven and been internal last months, growing of job are could the close confident that side very to levers that we change testing have audiences Maribel’s do with that, side mentioned. We demonstrated doors. great next so Ali became the these reluctant close the we the date, the

markets are meters test markets about now I XX tightening about test, how We to plays mean, to in our that out. XX

And some low three momentum, go a we’ve understands. [indiscernible] starting to built as the of she with been year, our from a markets about will hired marketing us that variety get York using fully she’s team, good articles. great Times, New as the of channels

seeing cost better per we're So, a order.

pricing. We volume focused We are moving previously. our very were

our point goal year X to pricing, in volume to months level. X We your range, than on would to is slight in lift are two that important seeing local subscribers national keep It's that. play the the exceed a still years a is but at more and to million I building us. in in XX markets say different the somewhere

market subscriptions really good our great of a newsrooms tick and on changes. of some making a the we're doing our across product for all really But really we as we're analytics to newsrooms sophisticated, value We also us have using by more the is the in available and focus our right seeing we've just Milwaukee, to really better, who's the really direction. digital-only really, around some subscriptions board local the lead just been to digital Phoenix and lot marketing, Shout company. in taking local doing up job out seen become

subside benefit mobile contemplating improvements, markets we’ve thing getting testing local just that started possible think we're better. be something we're going the the web on of local in ad As environment to times to interest mobile -- rollout are the might of and we of I in to other see at I consumers a a load then our that couple if are the noted, because And the with the see digital free level.

to us months pushing got ahead So, get there. keep I from go to XX another and we've to do million to the think of X years then hard

Doug Arthur

And paid that number subscribers? XXX,XXX TODAY include that USA does

Bob Dickey

that small is is predominately No, at but ad have we a paid the it's ad out. number that subscribers, that that the local, includes very But rolled this a free paid it's free been its driver. as just subscription, app point

Doug Arthur

media just in that video, category? then revenues the mean million, predominantly digital of up Is follow-up I one is $XX X%. what And that

Sharon Rowlands

It's owned a with of display some and within capabilities. with Definitely combination audience video display. the our operated extension

Doug Arthur

the driving what's growth? And

Sharon Rowlands

versus the very on very, Better CPMs, all sales on strong we've that’s back audience. building better realizing on really being a execution, that’s work got open direct great and as exchange more CPM with just done particularly the a of programmatic and actually the we really sell

Doug Arthur

videos its So, you predominately, referring. is then, display not are what

Sharon Rowlands

Yes.

Doug Arthur

very you Thank Okay. much.

Sharon Rowlands

Doug. Thanks

Operator

show participation I questions and you. this today's Thank queue gentlemen, Ladies no further you concludes time. day. for conference. and a this your at in Thank have wonderful