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Gannett (GCI)

Participants
Mike Reed Chief Executive Officer
Doug Horne Chief Financial Officer
Trisha Gosser Investor Relations
Doug Arthur Huber Research
Lawrence Fuller Fuller Asset Management
Call transcript
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Operator

Greetings. Welcome to the Gannett third quarter earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require Operator assistance during the conference, please press star, zero from your telephone keypad. is conference this note being recorded. Please time, Gosser with this I’ll turn Trisha to over conference Investor the At Relations. Trisha, you may now begin.

Trisha Gosser

Thank thank Officer. you Executive Officer, to morning be Mike everyone our call Doug and on Good quarter today Chief Chairman Presenting third discuss you call Gannett’s Horne, will results. today’s and Reed, for Rob. joining XXXX and Chief Financial

discuss call, financial results we quarter. will Gannett’s this During the for

supplement to the have Gannett website, addition find release. will press we earnings navigate you posted that an you in earlier our If

We will as additional this be referencing on the performance. it details it call today quarter’s with provides you on

please begin, we is being you let Before that this call me remind recorded.

with you are of encourage filings risks and made call expectations. earnings discussed risk addition, or as Gannett’s made results or today. obligation statement forward-looking in deemed involve may respect statements based These to results statements may be those that those and be materially to to events, to undertake and upon events statements during as In differ described future we this the statements certain any factors publicly forward-looking We SEC. law, current as cautionary well required and correct supplement, this Except with actual in the cause no are to uncertainties including made statements, the the forward-looking read the by during update regarding call. from

financial call information we the non-GAAP addition, discussing during some In will be today.

most U.S. earnings supplement. can find our the in You GAAP measures to of measures comparable reconciliations non-GAAP the

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Mike Reed

third quarter on earnings joining everyone. Thanks us call. Thanks morning this for Trisha. our morning Good

We morning the was quarter that report evolution term important that this business long especially another third of the our and in to business areas most strong plan the Gannett, for the our of are pleased our quarter for growth. are

was XX.X% adjusted ago. excited months EBITDA million now with of XX% a growing the margin the most revenues to to income last billion $XX.X EBITDA $XXX.X brings positive a to a quarter, QX up recent quarter million, for about from income in achieved month net XXXX. last and adjusted meaningfully $XXX We XX that of refinancing million our the categories are the Our we we represent line in of importantly strong counts EBITDA and QX growth year-over-year when streams increases and are had our that recurring to fourth did The guidance digital quarter subscriber segment. our in adjusted and our for digital evidence solutions in digital-only Also, led consecutive and results with at growth growth. marketing previous penetrating. given in addressable the stable rapidly big, very million digital very and digital Further, overall revenue are that continued and am I that at we in markets our again quarter These in are these strong results same XX%. revenue have quarter with report net year-over-year quarter. second $XX.X $X was end store the our our months XX the revenues adjusted in exceeded growing

down to on reducing principal the loan, five-year quarter, the third were term million by $XX we meaningfully During quarter. pay our third able debt in

us performance financial in year has aggressive refinance debt October, term B. Our strong combined month. just with allowed loan opportunistically our completed this This refinancing to repayment was last

refinancing second our was this fact, XXXX. In in

our the our reduce continued expense, leverage. our to of materially ongoing cost interest debt, to lower have able cash and been have We we

the structure strong even our so quarters ever pillar, pull growth our to balance aggressive here the third environment, quarter businesses here XXXX refinancings cash our to that risen and have have COVID-XX subscriber a revenue and strategically able growing U.S. subscription digital our financial growth results our the with despite on the along our modulate remain three accelerating repeatedly strategic first pressures we impacted being that de-lever our the and in biggest ability impact to quarter our digital in to ever. our with plan shown With well of lingering many. pandemic, to We year with of accumulated continue the growth, this and in adjusted digital-only alignment We inflationary challenging to best to EBITDA sheet. multiple regard in that It’s produce as compounding as in allow we us worth strategy, cost have free highlighting continues stable flow. growth were

local product live September, recently the Today in addition well strong USA content Our Plus, product Sports in subscribers USA strategy. launches second subscription in premium as combined set overall premium who business paid rates. personalized the app, progress in was insider with remarkable the new augmented national years product text adding an further to USA accelerate to experience, of data growth interactive gives our Today named for such subscribers crossword new launched worked including expert built subscription-led ESPN sports digital-only on and new XXXX. the Anderson, USA veteran visualization newly our net continued as our and Plus quarter, products Today chats Today growth begin in strategy the previously over live the Sports a has launched These immersive accelerating a via and our The and first network’s third reality NFL to experiences, subscription XX in on, that and resulted is USA growth network, XXX,XXX allowed female as built to in went access that brand high continued previous Josina on in a outpacing XXXX. subscriber new minute. of with early journalists was growth to with the across quarter messages our us that access Today More in podcasts, NFL our

markets on Plus portfolio USA digital in year. Today, currently live happy is expanding here product have drive of local more in our Chief the at to ancillary markets An brand and Mayur so our bundling coming well Rackiewicz, the helped both crossword over test Sports USA We’re added two led her new Nate app seven newly with growth the have allow being and the such Chief and as more in Increased markets of Strategy content onboard added us subscriptions and Officer, in on subscribers retention. Today on quarters Officer, marketing in USA rigor data to our by who net Sports and as our Gupta, app, Data August, products which in as XXX intelligence the and at now last all includes joined and Today. than Plus impact us also Marketing XXXX. subscriber

as We’re that joined Nate really happy well. us

While so the media volume are we growth visitor tremendous our subscriber stages. we in penetration upside monthly and firmly early XXX of peers, are excited represents than average among the about million unique we our sixth the reach, this increases. With all domestic year, audience X% digital-only less as reach believe largest

and segment. will to over XXXX end rigorous in that application this with represent plans The accelerated to of going flywheel versus of XXXX. X.XX building rate XXXX. and marketing proprietary are the growth of XX% digital solutions digital the growth in on we the forward expect to marketing marketing revenue pillar, success strategic subscription more services million data market. subscribers, The was approximately product are expectations operates digital business, million into model IQ an We which With our that in and outpace expected than local science, our annually accelerating competitive continue portfolio by expanding accelerated efforts our platform, growth a success generates complemented rates $XXX growth digital now solutions our marketing second of with SaaS-like

an a marketing value immediate a new freemium segment engaged on platform. with broader platform and create new will local as modest sales adjusted X%. and The client at them our sales serve businesses importantly augmented by proprietary the for which exposing In to considered the offering our have revenue, platform, growth connection which may tool friction acquiring this we customers year-over-year small efforts segment the marketing IQ. close services XX% million marketing previously direct using channels as quarter, $XXX current also in quarter, our grew again market ARPU the low marketing recorded inside solutions either customers third offering our local freemium and not will platform and and which Our to record XX.X%. view Sequentially, proprietary count capabilities we IQ digital providing teams, while local our by grew margins sold are quarter enabling of operate direct in of to users or that our core registered local demonstrated digital EBITDA functionality

ability IQ first directly assessment of by a ability coming growth phases and through category marketing with to local QX, free which forward the excited these customer registered the either you In their channels. efforts. our the within the the within XXXX, to DMS launched engagement account the a a on to expand university were to the local to generated to five updating segment our biggest platform This access and enable channel via current potential our could freemium two the next by IQ will TAM solutions connect that additional features years. freemium salesperson. costs our or presence we create The QX the of look with metrics and and We and in to and over a represent reduce one in experience, drive in purchase enable quarters receive are sales acquisition user

which is drive with what businesses third we solution quarter, customers. manage consistently our web national already best-in-class enhancements, leads invest as to businesses improvements and other our improved among a continue in we and believe uses go further through expertly the team build We help campaigns live engage presence, optimization. automation soon U.S. algorithm, platform awareness, rolling and million XXX drive product out In leads keyword and product our smart a as to IQ to to local competitor local over added

the from their with We core ongoing combined a implemented sustaining to party sales both U.S. target their businesses first percentage We lookalike on also million expansion over to expanding our audiences to businesses Facebook. dependence here use our growth data cookies. the are of at leverage in core in data of client to We we XX,XXX platform XX marketing business allow investment critical strive customer own channel and digit more and and meaningful over double third now product in reduce that help believe as Google the the businesses to today small count party

enhancing the In print is traditional across will regional and pillar circulation across we of our focused business on legacy performance optimizing be year, strategic third a country. Our coming advertising. the our effort creating offering print the

the XXXX beyond. right to from pricing all to the in and standard our this copy print have put headwinds and a around on the been improve sales in levers legacy post XXXX focus coming business believe systems segment service governance our customer intelligence can customer pull we our many have secular reinvigorating data continue merger that will place on Improved we despite lead face, We and data to analytics our and acquisition in single business from capitalizing to through integration pandemic. that and the impacts to business preferences improvement in print from the channel on performance

the Typical five-year in Group Typical, minority Our agreement in Win the our in investments avid reaching announcement, and in the inform assets the to sports In the analysis. prioritizing launched payable provider sports we includes sports Bet officially sports our $XX agreement to and sports dedicated In USA. The book U.S.-based businesses. content fourth September, onsite, We betting this upon growth to of Bet USA, and Gannett the acquire launched Typical series - betting leading U.S. For betting customer media ability a FTW Bet Limited, announced incentives partnership engage a betting to i-gaming The million Win, Germany. site pillar XXX Wire, quarter, third and Gannett by support certain for with and video team a incremental Typical referrals the is in spend five-year the exclusive Typical educate With became thresholds, to exciting bettors. equity help launched for the this fan. For provider stake Sportsbook we

over first XX Locks, Lorenzo’s the football season, months. video another series, back video two these the podcasts nearly views. the for more In be Additionally, weeks, launching million and and several page is assets next will drove just

we of help Gannett coverage here continue a expand fans, big will have sports journalists million We to and bet sports at to over XXX with over sports sports of our on XX audience to The COVID-XX with in betting the the under sports of remained which live the ability delta growing directly pressure events. events resurgence third the variant, business with impacted host the quarter market. pandemic our dedicated

and initially third remain engagement substantially largely still saw our returned and Ride Despite attendees with accelerate quarter, July quarter events expect to the events Great just in marquee quarter. XXXX. second the in drove XX% Moines over Des the year. million X to in event we the Annual quarter, in impressive While these fourth challenges, the year-over-year of live virtual grew this and events within third virtual returned live we Bicycle events revenue quarter the RAGBRAI, Register’s Across Iowa, virtual in

than Michael more Award Strahan X,XXX this hosted Cohen. week American was from High Andy Rob School summer Sports we XX by earlier featured and and Influencer aired Awards, National states, Show honorees Gronkowski, well held this highlighted The and hosts as first the with

Influencer in year and American social we engagement local broad, pandemic. drives XX%-plus talented media ecosystem, of national we emerge our into Gannett including website. portfolio influential events that with through will diverse votes beauty, in and honors our engaged, be categories significant and able the This million lifestyle, Our belief from and it audience Awards cast over firm to generate as this remain events personalities X.X brings to a growth fitness year-over-year the

operations, our hiring, final Our on-boarding, culture. and aspects This is all inclusive from building strategic the pillar and core of fifth influences our is and aligning inclusion this earlier published of and communities Diversity thrive. first commitment diverse an culture on our we empowering our pillar our educating, published goal our Workforce for Last to XXXX to around and year, company-wide year. Report organization

New survey, of to the their of USA to and a Today quarter staff to platform, local the communities XXXX, the national encourages and by and build in Phoenix, Today fifth over journalists, and newsroom donations. during like results would awareness were Similar Foundation female the from million of demographics our published Community XXX October, July is report through drive Gannett’s local change In XXXX, grants workforce workforce as published year. promote company’s empower organizations work I the and serve. publicly Gannett this year. which we efforts we support to to the September, and addition, program by year’s the Community leveraging This year-over-year. mirrors In committed their to the States, driving in highlight Thrives people that United issues, media York. this improve demographic this to in nation the announced also network, pledged Today of our mission including USA ideas communities, fantastic end is Community targets newsrooms In through of To the awards to year, each in year’s our $X.X accurately Nashville, its done organization brands to has reflect A USA be Thrives including of the remain news demographics program. this non-profits aiming support our across communities. to local their continue the a Foundation grants worthy and serve Gannett the our Thrives causes third XXXX. Supported further Black, to metrics XX, on communities. and interests, A the efforts achieving recipients their create of must honored Gannett A Indianapolis, Foundation, also newsrooms, people the in proportion and advance, Rochester, lived but XXXX and sure, gains and to and work increased local the representation experiences Indigenous, recorded color we Detroit, increased our Louisville, reflects

events QX store and in our have the to to fourth impact pandemic impact reasons market small to expected are against in closed turning to rare the Despite store a in CAGR the or, last terms again we digits. low the QX. expect sold Now estimating cycling the same year, declines the the This for single adjusted improve in quarter, attention revenue to same quarter strong combined with total our of XXXX, as reflects we two-year we have both cases and as noted, well revenues continues EBITDA. continues revenue newspapers decline that fourth of in during business improve on small decline

are We this very encouraged trend. by improving

expect to the we in EBITDA, As we QX QX. sustainable revenue in we towards than down QX, quarter expect down and two-year improved inside to march revenue With CAGR the total margins be respect XX% to in growth, XX.X% in adjusted our to QX from be XX% in trend higher fourth posted in we QX. down to XX.X% XX.X%

to XX%. margin the in expect to be XX.X% range We of

of I’d with materially flow, demonstrated to our our and during periods we EBITDA economic like very I adjusted consistently upcoming fourth modulate costs cost of revenue structure quarter even debt, before, now mentioned of an capital With drive no support As that and and are confident will our strong, response and lower in stable conditions. disruptions. our variable ability ability call we third broad and undertook macroeconomic cost optimize have improved our financial our early digital the the performance details the to and structure to XXXX of operations. to just to quarter to The expenses Doug much repeatedly review be in refinancing streams growing turn detail. in We print portfolio in and the recurring discuss more and a efforts Doug? strategies over base we print operations different. cash across

Doug Horne

morning and Mike, everyone. you Thank good

adjusted with $XXX.X we X.X% increased year-over-year. in strong that or decrease $XXX year points year-over-year. up revenues business the X.X% performance adjusted of outlook million, quarter. compared on year operating and our prior store in with number the EBITDA a increasing that $XX.X prior included were On The prior basis $XXX.X from $XXX.X disposed a recorded print adjusted Adjusted a XXX line the margin and revenues Adjusted Total in were EBITDA million year operating year-over-year benefited quarter. up total loan of a million year-over-year. $XX.X store was as revenues XX% QX, the the of XXXX. to a For basis, in forgiveness XX.X%, $X.X of of PPP same basis This expenses same was against X.X% quarter. associated from quarter, fourth XX.X% million EBITDA in quarter XX.X% totaled EBITDA declined of million million, EBITDA million digital the

bottom the $XX.X million $XX.X net On in third net income we achieved of adjusted the line, of Gannett and income attributable million quarter. to

net compares loss favorably income $XX.X where Our prior to a we of the year, million. incurred

year-over-year a We part with interest prior of as are lower year. XX% in result as compared benefiting expense the

properties, Print Moving segment compared X.X% publishing to was store a down now have year our increased versus on prior secular basis the compared operated basis. same basis. revenues on news the of and on the volumes now a on the revenue and the result cycle, as services year’s $XXX.X XX% in reflecting prior demand year contract. from and year category. both marketing million, year-over-year quarter the year operational store compared saw increased reduced compared Digital a same second as decreased a particularly prior national we Cars.com store Digital same page Despite and segments, expiration our two-year revenues digital to view the peak teams. surrounding prior and our XX.X% grew We the on a strong advertising cycled sales and to sports for media assets. as of national to basis, increased advertising prior last of the flat our print XX.X% fully X.X% media our quarter store off-platform basis, year. same in a National as strong the advertising execution XX.X% local digital decline sales owned revenue XX.X% classified continued to revenue and

million store marketing strong robust quarterly the marketing digital continued publishing delivered Additionally, its revenues saw as our services same publishing segment Digital obituaries, legal at $XX.X The year-over-year for notice and services segment in a revenue employment, result record with of operational in the second strong consecutive performance we XX% performance productivity. growth. categories.

with count local in of Our sales DMS business resonate X% solutions productivity, quarter. improve continues and continue to its client our growth small resulting previous our customers over to the force

subscribers a with store in on compared The travel. respectively. year-over-year yielded Moving business approximately same now compares the XX.X% and QX store trend the circulation, to where base. Within store growth delivery COVID-XX being the the focus improved as of down early trends Single and as a ARPU in we down on XX% same QX the X.X% basis, subscriber X.X% some X.X% to digital-only resurgence year prior cycled subscriber a quarter ongoing volume a grew of as versus down same by in the in to in lower decreased XX% the of declined X.X% pandemic. Digital-only saw copy to result being pandemic as continue Digital-only also pandemic second the revenues to of the pressure single remains year the growth revenue. contributed we of circulation, subscriptions. which year-over-year home growing third favorably slightly the result seasonal our impacted Digital-only overall prior in negatively COVID-XX we basis copy quarter of quarter. the down impacts on X,XXX,XXX

well as newsprint COVID-XX the QX as versus prior postage a stabilize subscribers of begin contract in of are XXXX roll prior to the well negatively delivery Adjusted the increased as impacted labor, ARPU begin margin off introductory the will copy costs the related Also, digital-only segment pandemic distribution, year. business. the XX.X% and live totaled the of resurgence it that XX.X% in The our expect events we to $XXX pricing again We higher the million, to had quarter year. experiencing in for versus by and their impact third costs the publishing as segment’s both we representing higher margin that EBITDA on as single and increase plans. publishing generated will volume was

the increase marketing XX.X% quarter of digital same in store was million, the basis. $XXX.X segment, a year-over-year an on solutions revenue For third total

of platform for quarter despite and a to to EBITDA XX.X% representing within the were marketing was margins ARPU which QX. compared of dollar effective prior set. more segment. million, the clients, ARPU. expect higher As strong QX due approximately previous the Adjusted which Core segment not third our ARPU margin. XX,XXX, digital for for in in fourth a that growth XX,XXX fact XX.X% in focused levels our the Comparing and in grew XX% EBITDA The core the those from EBITDA $XX few XX.X% clients strategic ARPU XX,XXX in platform, in marketing increases accounts increased digital low utilize transitioned over business, the record over in year consecutive and clients, reflects clients second X.X% the included only change attributable product at adjusted year-over-year. results of that digital quarter, the of to a portfolio clients subsequently the of $X large to we return totaled customers, but the QX year revenue million services impact of adjusted drives and of to off quarter, national our result prior a client XXXX, solutions X,XXX as marketing product national the increase proprietary to flat segment, or largely in primarily modestly ARPU revenue that quarter. prior Average year-over-year solutions to accounts year increased large seasonally the the count held relatively a margin

our by in and on was quarter $XX.X and year. million Net expense effective QX, income amortization. includes is structure. million allowances million, expense $XX Gannett attributable from prior Our the forwards. XX% capital impacted for tax interest the to valuation positively and which QX the our creation of carry The the from of rate was approximately interest net forgiveness the quarter company’s In income non-deductible of $XX.X benefited the was down improved PPP loans depreciation

to Let’s now balance the turn sheet.

during the $XX.X cash Our $X.XX was technology, at totaled Capital approximately flow million in debt investments million related product development, resulting net Free expenditures digital QX, billion. operating end the of quarter and million approximately third of We QX, quarter in total to reflecting XXXX balance loan infrastructure. of $XXX.X term cash of billion the of and debt, reflects approximately notes. the primarily interest convertible million, payments ended million comprised approximately $XXX.X $XX.X $XX.X million. $XXX.X was five-year of $X.X which of with

During excess real and other of as quarter, the through cash. funded million estate debt $XX.X as asset well million $XX we sales, repaid of

We the generate expect fourth $XXX million. sales asset incremental $XX to our of approximately to which sales the would year in asset bring million quarter, for total

fully As one new approximately senior secured term loan a and blended the first facilities credit The to for the five-year points, XXXX net Mike contains loan. mentioned of refinancing debt customary secured allowed loan. the to and $XXX notable covenants offering The basis senior new term similar lowering earlier, usual type nearly reduced secured rate private of lien previous with to five-year The from our due of cost from substantially X.X%. company during is by XXX million outstanding with secured senior update. of million new together debt this five-year term our loan loan, proceeds term $XXX the the us proceeds repay notes a previous in October term

pleased outstanding are junior of that first permit or quarter the debt term the new ratio provided $XX leverage to times. that than per the that less quarter, will repurchase We existing is lien fiscal equity, two for loan million up convertible net including the notes

term and of XXXX. the early other leverage approximately we times. five-year will recognize the the quarter on that $XX as refinancing loan loss XX, XXXX million estimate of lien First was of extinguishment a of We during net fees X.X September the fourth

I for as tax everyone for to expenses opportunity loss forecasted an forecasting it back our Operator these we As the give an overall well net are a provision, we can now as result questions. so will of hand fourth the currently quarter.

Operator

Please line Doug from Research. Huber instructions] question the proceed Arthur [Operator your with Our questions. coming is of first with

Doug Arthur

Yes, good morning.

Just on subs Obviously say. still and ARPU is harvested, digital. a your number be would question to you’re I revenue growing nicely. The

start more you what XXXX. press You level question lever ARPU in little to is, level a guess of the I at stable would talked subs aggressively? kind price about the of

Doug Horne

Thank if things Doug, and you he is the jump can questions. in Mike additional has certainly for some add. This to

terms of is progression the remain kind I think we’re ARPU those introductory full rate. will or be going of going as the increase in subscribers subscriber the what of maximizing talking we’re they think to our the naturally able natural increase, digital really more of volume on for naturally we to focused about subscribers, their of XXXX plans age, to but priced are so base, pricing I off monthly to

the of I stabilize in itself. those level, of at more more see not ARPU begin so really As we’ll subscribers year the more to and we think price base as of attacking necessarily maturation naturally ecosystem, looking we’re but the get a and next increase, then

Mike Reed

we the as us the Yes our this see penetration. million core long little revenue business rates you’ll a actual uniques, needing volume come matures that monthly XXX But increases counts of or such as start our customers subscriber ARPU to that that. with we a increasing of to segment to do the mirror outpaces growth see growth rates like for price With on, growth years next over and ways increasing bit. have Doug, work go any kind five far

Doug Arthur

any sensitivity, is on data or major it early enough price in terms point, have you too this the draw churn really in process Do to just conclusions of at etc.?

Mike Reed

but that a do come consumers suggests data XX% it’s data normalized data would I our good. of after to is our pricing early have for on, we XX% to XX%, using Well, to right early, far. more work, drive all still we’re but that retention is the improves data and data folks customer good and keeping far strong, the that an good, on year, it’s introductory it so that of are we’re with a so than say so we suggests strong basis the is ongoing us offer up Once still retention. more stays moving to retention above and so the now

Doug Arthur

lot other Mike, size USA sports Two the to - travel, the business system of revenue into is USA overall a know, but--or papers, with sales betting, frame great. sections this just of box? way is to lot it local Today on you source sort hard I questions. platform, so weakness, and a obviously franchise ubiquitous Okay, is of there thing. you’re going mentioned a There’s venture inserting your sort really know single of you through because copy it’s of the a

Mike Reed

for print of news product bit local USA Today Gannett’s gaming of has undertaken, USA Today itself than Sports little which USA is Today we’ve however, digital really Today, new well partnership. less total and the these sports of and Today in the that launches, the USA partnership as future coming tied product. our and are app, business revenue; than specifically growth circulation print little the XX% a bit see network, like crosswords, part gaming represents standalone advertising, the less are our as question, a to not properties the so overall from both USA The all across digital gaming to distributed as of Doug, news that the we Well, The Plus Gannett. XX% the of business partnership news we’ve Gannett network, part undertaken entire

Doug Arthur

really color Then trends finally, on that’s Okay, helpful. at any Newsquest?

Mike Reed

business been--it’s than just our job ability hit. pandemic. can’t of the overall but the it’s Newsquest actually they and very performance than with strategic going been performing a It’s on actually and since still There’s best we we’re business. the less will their the profitability, I our profitability revenue XX% ’XX, of and one very about revenue the pleased XXXX during contributor to really say overall great performed represent to they’re there over contributor. say nice maintain The that, more well nice enough pandemic not Gannett’s assets and and a team’s has done during so anything

Doug Arthur

been I remember I movers, digital they view? their Has digital if I correctly. success, were know And sort your mean, believe, early can has strategy of strategy--I a their in

Mike Reed

I as than in that Right think their side, more upside upside the strategy for not digital what there’s are I for see we as and bit digital early actually along so as on it’s there. marketing subscriber willing U.S., They’re the the as U.K. about in growth, here think the solutions of U.S. digital U.K. the the news less the segment stage XX, both U.S. XX% far is consumers than to digital here well in digital a pay online, the in little now more XX%,

Doug Arthur

very Interesting, much. okay. Thank right, you great. All

Operator

you. Thank

star, is it reminder, one a question a As ask to time. at this

line Fuller Asset Please Our Fuller proceed next your is Management. the of of question. with Lawrence question from

Lawrence Fuller

great questions for you. my a on Thanks two have morning. good and Hi, for congratulations taking questions, quarter. I

regarding the First question any X% plans, of discussions is there poison for shareholders? pill outstanding, the that’s are on lifting institutional cap

Mike Reed

comment and the and the Lawrence, Not thank the here. near term, question for in you

protect be that now, that the that certainly from a window a protect really did up we from threshold as that But so Gannett, right to a will year tax expires, move X.X%. We the for post best all merger interests to about NOL. company NOL window that we three-year our shareholders of purposes have current with intention it’s the now three-year and in

Lawrence Fuller

Act, impact you a that one latest Okay, the we out version all assuming to understood, business is--in the budget week, that came more. in then does Journalism I will passes, which have pass, the of quantified your actually that XXXX? this wanted budget have Sustainability about ask the have it on Local you if

Mike Reed

on you it of to it million stands if it we tax passes for a basis know, credits Gannett. think $XX $XX be could Yes, as employment million gross today,

Lawrence Fuller

respect subscribers, with to that’s the then something the business as at for the digital quantify, subscribers, credits ad guess can credits respect--I print guess and if you I moment? as with Okay, to difficult spending, well that’s more small for

Mike Reed

of it’s seems this the version it version-- the the by the most obviously Well bill recent most like, recent been Lawrence, moving hour, week,

Lawrence Fuller

[indiscernible]. Right,

Mike Reed

the not, credit it included only employment did for journalists. It tax employing

Lawrence Fuller

pages, so for me. read thanks that’s thought. X,XXX the didn’t that explaining entire manage to Okay, what to I I

Mike Reed

to a read. it’s lot Yes,

Lawrence Fuller

Okay, job. it. I very appreciate Great Thanks much.

Mike Reed

Thank you.

Operator

time. I’d There to Reed the this comments. Thank at you. additional like floor no to for additional back turn are Mike questions

Mike Reed

you us Okay, our as for restricted enhanced and to to - baskets really have shareholders, business, now value something additional commentary credit just we we payment it opportunity levers to everybody. continue create for latest opens up really in levers. important the can We mention now a the we’ll because great. have the I of all which allocation, company and do. we think as invest It’s capital his wanted end with about Thank facility. Doug at about mentioned

de-lever debt. down We’re pay to continue going and to

available more market, convertible levers execution and the stock notes, have now very so repurchase capital to an in also by squarely deliver repurchase summary, common optionality and to track solid create we’re our of even as In on to outstanding allocate more We business, to value us as XXXX. shares well for shareholders.

of in revenue and execute everybody for the against out year for The we laid and very digital to growth strategic a continue digital-only company debt updates. priority penetration to through and digital business discuss still priorities the on top beginning subscription our sheet at solutions our priority. we a allocation. continue our balance our to about the capital of think how continues we repayment driving the high of business, of high marketing is remains We recurring all quarterly increased De-levering terms be priority that

time Thanks as look lie joining to focused As support. our forward significant drive opportunities which today. create well, Appreciate we shareholders. results is you. XXXX progress and value for on and working apprised for about in to you strategy growth and the as our year-to-date keeping five demonstrate, us ahead the pillars of Thank excited we our and execution our the of the we’re momentum continue our

Operator

conference. This today’s concludes

time. may your at Thank You your disconnect lines for participation. you this