Tribune Publishing grew digital only subscriber revenue by $5.8 million in Q1. That is a 66% increase year over year. Total digital subscribers totaled 441,000 at the end of the quarter, compared to 370,000 for the same period a year ago.
Total revenues declined to $173.6 million compared to $206.4 million in Q1 a year ago. Net income from continuing operations increase to $6.1 million , compared to a net loss of $49.0 million a year ago.
“Our first quarter performance and forward looking guidance provide us the confidence that our key strategies of driving strong digital growth while transforming the expense side of our business is translating into solid performance. We remain focused on building a sustainable, digital business and on streamlined cost management, and our results show the strategy is working. As a result of our actions, we acquired 71,000 new digital subscribers over the prior year quarter and generated $25.5 million in Adjusted EBITDA, an increase of $15.9 million over the first quarter of 2020. We exited the quarter with a sound balance sheet, including more than $250 million in total cash, no debt and nearly a $60 million year-over-year decrease in long-term liabilities.”
“We remain cautious about the continuing impact and duration of the pandemic and we continue our efforts to reduce our cost structure, particularly our fixed costs, including real estate and other infrastructure. We believe that a continuing focus on cost management, coupled with substantial growth in our digital subscription revenue, has positioned the company to succeed in a post-pandemic future. We also believe that the digital investments we have made and continue to make in our digital infrastructure, our data and analytics and digital subscriber teams as well as thoughtful newsroom investments have positioned us for a sustainable and optimistic future. Additionally, as previously disclosed, our investment in BestReviews generated a significant $100 million cash pre-tax financial return for Tribune Publishing and thereby our shareholders in less than three years of ownership.”
Terry Jimenez, Tribune Publishing, Chief Executive Officer and President
First Quarter 2021 Results Details
The company says advertising revenues “remain challenging”. Ad revenue decreased 26.4% ($20.3 million) in Q1 2021. That included a $2.0 million decline “related to cars.com and forsalebyowner.com transition sales contracts which fully cycled in the second quarter of 2020.
Total circulation revenues decreased by $2.5 million, a 2.7% decline for Q1 2021 compared to a year ago. Home delivery declined by $5.9 million and singly copy fell by $2.3 million. These declines were offset by the $5.8 million increase in digital subscription revenue for the quarter.
Outlook for 2021
The publishing company expects total revenues in Q2 2021 to be between $172 million and $175 million. Adjusted EBITDA is expected to be between $28 million to $30 million.
Pending Deal with Alden Global Capital
As announced on February 16, 2021, Tribune Publishing has entered into a definitive merger agreement under which affiliates of Alden Global Capital (“Alden”) will acquire all of the outstanding shares of Tribune Publishing common stock not currently owned by Alden for $17.25 per share in cash. Tribune Publishing continues to expect the transaction to close in the second quarter of 2021, subject to, among other things, the approval of holders of two-thirds of Tribune common stock not owned by Alden, as well as other customary closing conditions. If the contemplated transaction closes, Tribune Publishing will become a privately held company, and its common stock will no longer be listed on any public market.
About Tribune Publishing
Tribune is a media company headquartered in Chicago. It operates media entities in eight markets, including he Chicago Tribune, New York Daily News, The Baltimore Sun, Hartford Courant, South Florida’s Sun Sentinel and Orlando Sentinel, Virginia’s Daily Press and The Virginian-Pilot, and The Morning Call of Lehigh Valley, Pennsylvania.
