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GANNETT Gannett Announces First Quarter 2021 Results Strong first quarter Revenue and Adjusted EBITDA performance Paid digital - only subscriptions surpass 1.2 million , an increase of 37 % from the prior year period Achieved $ 300 million of annualized synergies to date , ahead of targeted timeline MCLEAN , VA May 7 , 2021 Gannett Co. , Inc. ( " Gannett " , " we " , " us " , " our " , or the " Company " ) ( NYSE : GCI ) today reported its financial results for the first quarter ended March 31 , 2021 . — " The first quarter of 2021 was our best quarter to date for new digital - only subscriptions subsequent to the acquisition of Legacy Gannett , surpassing 1.2 million , and a very encouraging start to the year as a whole . Our core digital marketing solutions teams also had a fantastic quarter , setting new records in productivity . Adjusted EBITDA grew from the first quarter of 2020 and reflected Adjusted EBITDA margin expansion of 250 basis points to the prior year period , " said Michael Reed , Gannett Chairman and Chief Executive Officer . " We are pleased to have fully refinanced our 11.5 % term loan during the quarter as well as achieving our target of $ 300 million of annualized synergies , well ahead of our year end 2021 goal . " " With the refinancing behind us , we are focused on a long - term , subscription - led , digital growth strategy . With the first quarter momentum in both digital - only subscriptions and in our Digital Marketing Solutions segment , we believe we are well positioned to not only meaningfully grow Adjusted EBITDA year over year , but also continue our evolution to a digitally focused content platform . " Financial Highlights in thousands First Quarter 2021 Revenues Net loss attributable to Gannett 777,084 ( 142,316 ) 100,465 Adjusted EBITDA ( ¹ ) ( non - GAAP ) Net cash flow provided by operating activities 61,316 Free cash flow ( 1 ) ( non - GAAP ) 53,709 ( 1 ) Refer to " Use of Non - GAAP Information " below for the Company's definition of Adjusted EBITDA and Free cash flow , as well as the reconciliation of such measures to the most comparable GAAP measure included herein . First Quarter 2021 Consolidated Results First quarter revenues of $ 777.1 million decreased 18.1 % as compared to the prior year quarter . Same store revenues ( as defined and reconciled on Table No. 5 below ) decreased 16.5 % compared to the first quarter of 2020 , due to unfavorable impacts resulting from the COVID - 19 pandemic and general trends adversely impacting the publishing industry . First quarter same store revenue trends were impacted by the cessation of industry wide digital marketing services incentives at the end of 2020. The incentives , earned through our Digital Marketing Solutions segment , totaled $ 13.0 million during 2020 , with $ 9.2 million in the first quarter of 2020 , accounting for a decrease of 0.9 % on the first quarter same store trend . On a comparable basis , first quarter same store trends improved slightly from fourth quarter 2020 levels . Digital advertising and marketing services revenues reached $ 195.2 million in the first quarter , or 25.1 % of total revenues . Digital - only circulation revenues of $ 23.2 million grew 46.7 % in the first quarter of 2021 compared to the same period in the prior year attributable to a 37 % increase compared to the same period in the prior year in digital - only subscriptions . Digital - only subscriptions totaled approximately 1.2 million at the end of the first quarter of 2021 , adding 120,000 net new subscriptions in the first quarter . Total digital revenues were $ 229.2 million or 29.5 % of total revenues , which includes Digital advertising and marketing services revenues , Digital - only circulation revenues and Digital syndication and affiliate revenues . Net loss attributable to Gannett of $ 142.3 million in the first quarter reflects a $ 126.6 million non - cash loss on the derivative associated with the 6 % senior secured convertible notes due 2027 ( the " 2027 Convertible Notes " ) , a $ 19.4 million loss associated with the early extinguishment of debt and an additional $ 10.2 million related to costs incurred in connection with our debt refinancing activities during the quarter .