Gannett Expects Revenue Trends, Excl. Impact Of JMG Deal, To Improve Over 2015

(RTTNews) - Gannett Co., Inc. (GCI) said it expects revenue trends, excluding impact of the JMG acquisition, to improve over 2015 driven largely by growth in digital. It expects advertising revenues to decline in the 5%-7% range and circulation revenues to decline in the 2%-4% range.

Robert Dickey, president and chief executive officer, said, "EBITDA margins will likely stay under pressure in the short term and improve sequentially throughout the year as we continue to offset incremental public company costs, the earnings impact of declining revenues, higher non-cash pension expense, and lower contributions from CareerBuilder, with ongoing cost efficiency programs and growth in digital revenue."

Without the impact of the pending acquisition of JMG, the company expects 2016 Capital expenditures of $50 million-$60 million, Depreciation and amortization of approximately $110 million.

In early October, the company announced that Gannett and Journal Media Group entered into a definitive merger agreement under which Gannett will acquire all of the outstanding common stock of Journal Media Group for approximately $280 million, net of acquired cash.

In its first full year, the transaction is expected to add approximately $450 million to Gannett's annual revenues and approximately $60 million in adjusted EBITDA, through a combination of JMG's solid base business and certain quickly attainable synergies. The company expects approximately $25 million of additional synergy opportunities in the second year.