Glacier Media (GVC) Q3 2023 earnings summary

Executive summary

• Q3 revenue was $42.7M and EBITDA $1.3M; reported net loss attributable to common shareholders was $4.2M. Lower print revenue, inflation and higher legal costs weighed on results.

• Changes that moved three print operations from consolidated subsidiaries to joint ventures reduced reported revenue and EBITDA versus Q3 2022, while increasing equity earnings.

Financial highlights

• Q3 revenue was $42.686M vs $47.920M YoY; nine-month revenue was $119.226M vs $133.287M.

• Q3 EBITDA was $1.284M vs $1.837M; nine-month EBITDA was $(4.194)M vs $4.713M.

• Q3 net loss attributable to common shareholders was $4.205M, or $(0.03) per share, vs $0.748M, or $(0.01) per share; nine-month loss was $17.608M vs $3.800M.

• Capital expenditures were $0.976M in Q3 vs $1.486M; nine-month spending was $3.195M vs $3.618M.

Outlook and guidance

• Strategic investment in key development areas is being scaled back until economic conditions become clearer; cost reductions are expected to continue through year-end 2023 and into 2024.

• Targeted closures of uneconomic print operations are intended to support the transition to digital products and growth in data, analytics and intelligence businesses.

• Industry-specific softness is expected through year-end 2023; pressure from higher interest rates is anticipated to begin stabilizing in 2024.

• Long-term objective: growth in digital media and data products outpaces declines in print advertising profit and cash flow.