Tribune Publishing has been in the news recently. The big story is Alden Global Capital’s December 14, 2020 offer to acquire the company. Tribune has subsequently responded to Alden. The local newspaper company created a special Board committee to review the deal.
Tribune has other news. It updated its financial guidance for Q4 and full year 2020.
Expected Increase in Profitability
- Q4 2020: Tribune expects to generate a range of between $191 million and $192 million in revenue. AEBITDA is expected to be recorded in the $28 million-$29 million range.
- Full year 2020: Tribune expects revenues in the range of $745 million-$746 million. AEBITDA is expected in the $72 million-$73 million range.
- For fiscal year 2021: Tribune expects revenue in the range of $675 million to $690 million and $105 million-$113 million in AEBITDA
The CEO of Tribune Publishing, Terry Jimenez, said, “We have taken measures throughout 2020 that will benefit 2021 and beyond, and our guidance reflects those measures. As we continue to execute our digital subscription, advertising and content strategies, we expect to generate substantial year-over-year increases in AEBITDA next year and create a clear path for long-term strong performance.”
Digital Subscriptions are Key
Tribune reported in November that Q3 2020 digital-only subscriber revenue increased 67% compared the year prior. That fueled total Tribune’s digital subscriber base to 427,000 at the end of the quarter.
Local Media Association CEO Nancy Lane told Poynter that they see a lot of companies dedicating full-time positions to subscriber retention. It’s so much easier to hold onto a subscriber than to get a new one.”
Poynter pointed to data from Mather Economics. It showed that the retention rate for print and digital subscribers is up this year for the industry. The annualized rate for 2020 year to date was 70.9% compared to 63.2% in 2019.
