Gannett Co Inc

Previous wording

The following discussion and analysis of our financial condition and results of operations and quantitative and qualitative disclosures should be read in conjunction with our unaudited condensed consolidated financial statements and related notes and with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission. Management's Discussion and Analysis of Financial Condition and Results of Operations contains a number of forward-looking statements that reflect our plans, estimates, and beliefs, all of which are based on our current expectations and could be affected by certain uncertainties, risks, and other factors described under Cautionary Note Regarding Forward-Looking Statements, Risk Factors, and elsewhere throughout this Quarterly Report, as well as the factors described in our Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent periodic reports filed with the Securities and Exchange Commission, particularly under "Risk Factors." Our actual results could differ materially from those discussed in the forward-looking statements.

Current wording

The following discussion and analysis of our financial condition and results of operations and quantitative and qualitative disclosures should be read in conjunction with our unaudited condensed consolidated financial statements and related notes included in this Quarterly Report on Form 10-Q and with our audited consolidated financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2023, as filed with the Securities and Exchange Commission. Management's Discussion and Analysis of Financial Condition and Results of Operations contains a number of forward-looking statements that reflect our plans, estimates, and beliefs, all of which are based on our current expectations and could be affected by certain uncertainties, risks, and other factors described under Cautionary Note Regarding Forward-Looking Statements, Risk Factors, and elsewhere throughout this Quarterly Report on Form 10-Q, as well as the factors described in our Annual Report on Form 10-K for the year ended December 31, 2023, and subsequent periodic reports filed with the Securities and Exchange Commission, particularly under "Risk Factors." Our actual results could differ materially from those discussed in the forward-looking statements.

Previous wording

•Data privacy standards continue to evolve and implementation of standards may result in incremental costs. Privacy standards, such as third-party cookie deprecation, are anticipated to impact the advertising industry more significantly over the next 12 to 18 months. We utilize first-party data to assist our customer's advertising needs but an industry-wide solution to address impacts to programmatic advertising has not yet been developed.

Current wording

•Data privacy standards continue to evolve and implementation of standards may result in incremental costs.

Previous wording

For the three months ended March 31, 2024, we recorded an impairment charge of approximately $46.0 million related to the McLean, Virginia operating lease right-of-use asset and the associated leasehold improvements. For the three months ended March 31, 2023, we recorded an immaterial asset impairment related to our continued plan to monetize non-strategic assets.

Current wording

For the three months ended June 30, 2024, we did not record an asset impairment, and for the six months ended June 30, 2024, we recorded an impairment charge of approximately $46.0 million related to the McLean, Virginia operating lease right-of-use asset and the associated leasehold improvements.

Previous wording

For the three months ended March 31, 2024, we recognized a net loss on the sale of assets of $0.6 million, primarily related to a net loss of $0.9 million at the Domestic Gannett Media segment, partially offset by a net gain of $0.4 million at the Newsquest segment, as part of our continued plan to monetize non-strategic assets.

Current wording

For the three and six months ended June 30, 2024, we recognized a net loss on the sale of assets of $0.2 million and $0.8 million, respectively, primarily related to a net loss of $0.2 million and $1.1 million, respectively, at the Domestic Gannett Media segment, partially offset for the six months ended June 30, 2024, by a net gain of $0.4 million at the Newsquest segment as part of our continued plan to monetize non-strategic assets.

Previous wording

For the three months ended March 31, 2023, we recognized a net gain on the sale of assets of $17.7 million, primarily related to a net gain of $16.3 million at the Domestic Gannett Media segment primarily related to the sale of a production facility as part of our plan to monetize non-strategic assets, and a gain of $1.4 million at our Corporate and other category related to the sale of intellectual property.

Current wording

For the three and six months ended June 30, 2023, we recognized a net loss on the sale of assets of $0.1 million and a net gain of $17.5 million, respectively. For the six months ended June 30, 2023, the net gain was primarily related to a gain of $16.2 million at the Domestic Gannett Media segment, mainly due to the sale of a production facility as part of our plan to monetize non-strategic assets, as well as the gain on the sale of intellectual property of $1.4 million at our Corporate and other category.

Previous wording

For the three months ended March 31, 2024, we incurred Integration and reorganization costs of $17.9 million. Of the total costs incurred, $5.3 million were related to severance activities and $12.6 million were related to other costs, including $9.7 million expensed as of the cease-use date related to certain licensed content as well as costs for consolidating operations, mainly related to systems implementation.

Current wording

For the three and six months ended June 30, 2024, we incurred Integration and reorganization costs of $19.8 million and $37.7 million, respectively. Of the total costs incurred, $4.4 million and $9.7 million, respectively, were related to severance activities and $15.3 million and $28.0 million, respectively, were related to other reorganization-related costs, primarily reflecting a $9.9 million withdrawal liability which was expensed as a result of ceasing contributions to a multiemployer pension plan, as well as costs for consolidating operations. In addition, for the six months ended June 30, 2024, other reorganization-related costs also included $9.7 million expensed as of the cease-use date related to certain licensed content.

Previous wording

For the three months ended March 31, 2023, we incurred Integration and reorganization costs of $12.1 million. Of the total costs incurred, $10.3 million were related to severance activities and $1.9 million were related to other costs, including costs for consolidating operations, primarily related to systems implementation and the outsourcing of corporate functions, partially offset by the reversal of a withdrawal liability related to a multiemployer pension plan of $2.0 million based on the settlement of the withdrawal liability.

Current wording

For the three and six months ended June 30, 2023, we incurred Integration and reorganization costs of $7.3 million and $19.4 million, respectively. Of the total costs incurred, $2.6 million and $12.8 million, respectively, were related to severance activities and $4.7 million and $6.6 million, respectively, were related to other reorganization-related costs, including costs for consolidating operations, mainly related to systems implementation and the outsourcing of corporate functions. In addition, for the six months ended June 30, 2023, other reorganization-related costs were partially offset by the reversal of a withdrawal liability related to a multiemployer pension plan of $2.0 million based on the settlement of the withdrawal liability.

Previous wording

Our U.K. media operations are conducted through our Newsquest subsidiary. In addition, we have foreign operations in regions such as Canada, Australia, New Zealand and India. Earnings from operations in foreign regions are translated into U.S. dollars at average exchange rates prevailing during the period, and assets and liabilities are translated at exchange rates in effect at the balance sheet date. Currency translation fluctuations may impact revenue, expense, and operating income results for our international operations. For example, our international revenues are favorably impacted as the U.S. dollar weakens relative to other foreign currencies, and unfavorably impacted as the U.S. dollar strengthens relative to other foreign currencies. Foreign currency exchange rate fluctuations positively impacted our revenues and profitability during the three months ended March 31, 2024.

Current wording

Our U.K. media operations are conducted through our Newsquest subsidiary. In addition, we have foreign operations in regions such as Canada, Australia, New Zealand and India. Earnings from operations in foreign regions are translated into U.S. dollars at average exchange rates prevailing during the period, and assets and liabilities are translated at exchange rates in effect at the balance sheet date. Currency translation fluctuations may impact revenue, expense, and operating income results for our international operations. For example, our international revenues are favorably impacted as the U.S. dollar weakens relative to other foreign currencies, and unfavorably impacted as the U.S. dollar strengthens relative to other foreign currencies. Foreign currency exchange rate fluctuations positively impacted our revenues and profitability during the three and six months ended June 30, 2024.

Previous wording

We are exposed to potential increases in interest rates associated with our Senior Secured Term Loan, which accounted for approximately 31% of our outstanding debt as of each March 31, 2024 and December 31, 2023, as well as fluctuations in foreign currency exchange rates, primarily related to our operations in the U.K. We expect continued uncertainty and volatility in the U.S. and global economies which will continue to impact our business.

Current wording

We are exposed to potential increases in interest rates associated with our Senior Secured Term Loan, which accounted for approximately 30% and 31% of our outstanding debt as of June 30, 2024 and December 31, 2023, respectively, as well as fluctuations in foreign currency exchange rates, primarily related to our operations in the U.K. We expect continued uncertainty and volatility in the U.S. and global economies which will continue to impact our business.

Previous wording

Our website is www.gannett.com. Information contained on our website is not part of this quarterly report. We use our website as a distribution channel for material company information. Financial and other important information regarding the Company is routinely posted on and accessible on the Investor Relations and News and Events subpages of our website, which are accessible by clicking on the tab labeled "Investor Relations" and "News and Events", respectively, on the website home page. Therefore, investors should look to the Investor Relations, and News and Events subpages of the Company's website for important and time-critical information.

Current wording

Our website is www.gannett.com. Information contained on our website is not part of this Quarterly Report on Form 10-Q. We use our website as a distribution channel for material company information. Financial and other important information regarding the Company is routinely posted on and accessible on the Investor Relations and News and Events subpages of our website, which are accessible by clicking on the tab labeled "Investor Relations" and "News and Events", respectively, on the website home page. Therefore, investors should look to the Investor Relations, and News and Events subpages of the Company's website for important and time-critical information.

Previous wording

(a) Amounts are net of intersegment eliminations of $38.8 million and $34.4 million for the three months ended March 31, 2024 and 2023, respectively. Intersegment eliminations represent digital marketing services revenues and expenses associated with products sold by sales teams in our Domestic Gannett Media and Newsquest segments but fulfilled by our DMS segment. When discussing segment results, these revenues and expenses are presented gross but are eliminated in consolidation.

Current wording

(a) Amounts are net of intersegment eliminations of $38.4 million and $37.9 million for the three months ended June 30, 2024 and 2023, respectively, and $77.2 million and $72.3 million for the six months ended June 30, 2024 and 2023, respectively. Intersegment eliminations represent digital marketing services revenues and expenses associated with products sold by sales teams in our Domestic Gannett Media and Newsquest segments but fulfilled by our DMS segment. When discussing segment results, these revenues and expenses are presented gross but are eliminated in consolidation.

Previous wording

Interest expense: For the three months ended March 31, 2024, Interest expense was $26.6 million compared to $28.3 million for the three months ended March 31, 2023. For the three months ended March 31, 2024, interest expense decreased compared to the three months ended March 31, 2023, primarily due to a lower debt balance, mainly driven by quarterly amortization payments and required prepayments on our Senior Secured Term Loan and repurchases of our 2026 Senior Notes, partially offset by an increase in interest rates on the Senior Secured Term Loan.

Current wording

Interest expense: For the three and six months ended June 30, 2024, Interest expense was $26.3 million and $52.8 million, respectively, compared to $28.6 million and $56.9 million for the three and six months ended June 30, 2023, respectively. For the three and six months ended June 30, 2024, interest expense decreased compared to the three and six months ended June 30, 2023, primarily due to a lower debt balance, mainly driven by quarterly amortization payments and required prepayments on our Senior Secured Term Loan and repurchases of our 2026 Senior Notes, partially offset by an increase in interest rates on the Senior Secured Term Loan.

Previous wording

Non-operating pension income: For the three months ended March 31, 2024, Non-operating pension income was $3.1 million compared to $1.8 million for the three months ended March 31, 2023. The increase in Non-operating pension income for the three months ended March 31, 2024, compared to the same period in 2023 was primarily due to the decrease in the discount rate, partially offset by a decline in the projected benefit obligation.

Current wording

Non-operating pension income: For the three and six months ended June 30, 2024, Non-operating pension income was $3.1 million and $6.3 million, respectively, compared to $2.3 million and $4.1 million for the three and six months ended June 30, 2023, respectively. The increase in Non-operating pension income for the three and six months ended June 30, 2024, compared to the same periods in 2023 was primarily due to the decrease in the discount rate, partially offset by a decline in the projected benefit obligation.

Previous wording

The provision for income taxes is calculated by applying the projected annual effective tax rate for the year to the current period income or loss before tax plus the tax effect of any significant or unusual items (discrete events), and changes in tax laws. The provision for income taxes for the three months ended March 31, 2024, was mainly driven by the pre-tax book loss, the increase in valuation allowances on non-deductible U.S. interest expense carryforwards, the global intangible low-taxed income inclusion and state tax expense. The provision was calculated using an estimated annual effective tax rate of negative 11.1%. The estimated annual effective tax rate is principally impacted by valuation allowances on non-deductible interest expense carryforwards, foreign tax expense, and the global intangible low-taxed income inclusion, partially offset by the benefit of U.S. pre-tax book loss. The estimated annual effective tax rate is based on the projected tax expense for the full year.

Current wording

The benefit for income taxes for the three months ended June 30, 2024, was mainly driven by the release of uncertain tax position reserves related to an Internal Revenue Service ("IRS") audit in the second quarter of 2024, the release of foreign valuation allowances and the pre-tax book loss. The benefit was calculated using an estimated annual effective tax rate of negative 6.2%. The estimated annual effective tax rate before discrete items is principally impacted by valuation allowances on non-deductible interest expense carryforwards, the global intangible low-taxed income inclusion, and foreign tax expense, partially offset by the benefit of U.S. pre-tax book loss. The estimated annual effective tax rate is based on the projected tax expense for the full year.

Previous wording

The benefit for income taxes for the three months ended March 31, 2023, was mainly driven by the tax benefit of the pre-tax book loss, the change in valuation allowances on non-deductible U.S. interest expense carryforwards, the global intangible low-taxed income inclusion and stock compensation. The benefit was calculated using the estimated annual effective tax rate of negative 273.3%.

Current wording

The benefit for income taxes for the six months ended June 30, 2023, was mainly driven by the tax benefit of the pre-tax book loss, the change in valuation allowances on non-deductible U.S. interest expense carryforwards, and the global intangible low-taxed income inclusion.

Previous wording

Net (loss) income attributable to Gannett and diluted (loss) income per share attributable to Gannett

Current wording

Net income (loss) attributable to Gannett and diluted income (loss) per share attributable to Gannett

Previous wording

For the three months ended March 31, 2024, Net loss attributable to Gannett and diluted loss per share attributable to Gannett were $84.8 million and $0.60, respectively, compared to Net income attributable to Gannett and diluted income per share attributable to Gannett of $10.3 million and $0.07, respectively, for the three months ended March 31, 2023. The change for the three months ended March 31, 2024, compared to the same period in the prior year reflects the various items discussed above.

Current wording

For the three months ended June 30, 2024, Net income attributable to Gannett and diluted income per share attributable to Gannett were $13.7 million and $0.09, respectively, compared to Net loss attributable to Gannett and diluted loss per share attributable to Gannett of $12.7 million and $0.09, respectively, for the three months ended June 30, 2023. For the six months ended June 30, 2024, Net loss attributable to Gannett and diluted loss per share attributable to Gannett were $71.0 million and $0.50, respectively, compared to Net loss attributable to Gannett and diluted loss per share attributable to Gannett of $2.3 million and $0.02, respectively, for the six months ended June 30, 2023. The change for the three and six months ended June 30, 2024, compared to the same periods in the prior year reflects the various items discussed above.

Previous wording

For the three months ended March 31, 2024, Digital advertising revenues increased compared to the three months ended March 31, 2023, primarily due to an increase in sponsored link and national programmatic revenue, as well as higher spend on automotive advertisements, partially offset by lower spend on obituary and employment notifications.

Current wording

For the three and six months ended June 30, 2024, Digital advertising revenues increased compared to the three and six months ended June 30, 2023, primarily due to an increase in sponsored link and national programmatic revenue, as well as higher spend on automotive advertisements, partially offset by lower spend on obituary and employment notifications.

Previous wording

For the three months ended March 31, 2024, Digital marketing services revenues increased compared to the three months ended March 31, 2023, primarily due to an increase in client spend.

Current wording

For the three and six months ended June 30, 2024, Digital marketing services revenues increased compared to the three and six months ended June 30, 2023, primarily due to an increase in client spend.

Previous wording

For the three months ended March 31, 2024, Digital-only subscription revenues increased compared to the three months ended March 31, 2023, primarily driven by an increase in Digital-only subscription average revenue per user ("Digital-only ARPU") of 24%, mainly due to product mix. Refer to "Key Performance Indicators" below for further discussion of Digital-only ARPU.

Current wording

For the three and six months ended June 30, 2024, Digital-only subscription revenues increased compared to the three and six months ended June 30, 2023, primarily driven by an increase in digital-only subscription average revenue per user ("Digital-only ARPU") of 21% and 22%, respectively, mainly due to product mix. Refer to "Key Performance Indicators" below for further discussion of Digital-only ARPU.

Previous wording

For the three months ended March 31, 2024, Digital other revenues increased compared to the three months ended March 31, 2023, primarily due to higher syndication revenues.

Current wording

For the three and six months ended June 30, 2024, Digital other revenues increased compared to the three and six months ended June 30, 2023, primarily due to an increase in affiliate, partnership, and syndication revenues.

Previous wording

For the three months ended March 31, 2024, Print advertising revenues decreased compared to the three months ended March 31, 2023, primarily due to a decrease in local and national print advertisements and lower advertiser inserts, mainly due to a reduction in spend from customers driven by macroeconomic factors, and lower spend on classified advertisements, mainly associated with obituary notifications.

Current wording

For the three and six months ended June 30, 2024, Print advertising revenues decreased compared to the three and six months ended June 30, 2023, primarily due to a decrease in local and national print advertisements and lower advertiser inserts, mainly due to a reduction in spend from customers driven by macroeconomic factors, and lower spend on classified advertisements, mainly associated with obituary notifications and real estate advertisements.

Previous wording

For the three months ended March 31, 2024, Print circulation revenues decreased compared to the three months ended March 31, 2023, due to a decline in home delivery and single copy as a result of a reduction in the volume of subscribers, partially offset by an increase in rates.

Current wording

For the three and six months ended June 30, 2024, Print circulation revenues decreased compared to the three and six months ended June 30, 2023, due to a decline in home delivery and single copy as a result of a reduction in the volume of subscribers, partially offset by an increase in rates.

Previous wording

For the three months ended March 31, 2024, Commercial and other revenues decreased compared to the three months ended March 31, 2023, primarily due to a decrease in commercial print revenues, driven by the decline in production volume, as well as facility closures, and a decrease in the price of newsprint, partially offset by an increase in event revenues, driven by an increase in ticket sales related to higher attendance.

Current wording

For the three and six months ended June 30, 2024, Commercial and other revenues decreased compared to the three and six months ended June 30, 2023, primarily due to a decrease in commercial print and delivery revenues, driven by the decline in production volume, as well as facility closures, and a decrease in the price of newsprint. For the six months ended June 30, 2024, the decrease in Commercial and other revenues was partially offset by an increase in event revenues, mainly driven by an increase in ticket sales related to higher attendance.

Previous wording

For the three months ended March 31, 2024, Newsprint and ink costs decreased compared to the three months ended March 31, 2023, primarily due to lower volume due to the decline in revenues, as well as a decrease in the cost of newsprint of approximately $4.9 million.

Current wording

For the three and six months ended June 30, 2024, Newsprint and ink costs decreased compared to the three and six months ended June 30, 2023, primarily due to lower volume due to the decline in revenues, as well as a decrease in the cost of newsprint of approximately $4.3 million and $9.1 million, respectively.

Previous wording

For the three months ended March 31, 2024, Distribution costs decreased compared to the three months ended March 31, 2023, primarily due to a decrease of approximately $12.0 million associated with lower home delivery and single copy revenues, partially offset by an increase in postage costs of approximately $2.5 million, mainly due to conversion to mail delivery in multiple markets.

Current wording

For the three and six months ended June 30, 2024, Distribution costs decreased compared to the three and six months ended June 30, 2023, primarily due to a decrease of approximately $15.0 million and $27.0 million, respectively, associated with lower home delivery and single copy revenues, and the conversion to mail, partially offset by an increase in postage costs of approximately $1.3 million and $3.8 million, respectively, mainly due to conversion to mail delivery in multiple markets, as well as higher postage costs associated with an increase in advertising revenue.

Previous wording

For the three months ended March 31, 2024, Compensation and benefits costs decreased compared to the three months ended March 31, 2023, primarily due to a decrease in headcount tied to ongoing cost control initiatives, including facility closures and conversion to mail delivery in multiple markets.

Current wording

For the three and six months ended June 30, 2024, Compensation and benefits costs decreased compared to the three and six months ended June 30, 2023, primarily due to a decrease in headcount tied to ongoing cost control initiatives, including facility closures and conversion to mail delivery in multiple markets.

Previous wording

For the three months ended March 31, 2024, Outside services costs, which includes professional services fulfilled by third parties, media fees and other digital costs, and paid search and ad serving services, increased compared to the three months ended March 31, 2023, primarily due to higher third-party media fees of approximately $2.6 million, partially offset by a decrease of approximately $0.6 million in miscellaneous expenses.

Current wording

For the three and six months ended June 30, 2024, Outside services costs, which includes professional services fulfilled by third parties, media fees and other digital costs, and paid search and ad serving services, decreased compared to the three and six months ended June 30, 2023, primarily due to a decrease of approximately $3.3 million and $3.9 million, respectively, in miscellaneous expenses, mainly due to the cease-use of certain licensed content, partially offset for the six months ended June 30, 2024, by higher third-party media fees of approximately $2.2 million.

Previous wording

For the three months ended March 31, 2024, Other costs decreased compared to the three months ended March 31, 2023, primarily due to lower facility related expenses of approximately $3.8 million, mainly associated with real estate sales and facility consolidations and lower miscellaneous expenses of approximately $3.8 million, mainly related to lower technology costs, partially offset by higher promotion costs of approximately $2.1 million.

Current wording

For the three and six months ended June 30, 2024, Other costs decreased compared to the three and six months ended June 30, 2023, primarily due to lower miscellaneous expenses of approximately $4.3 million and $8.1 million, respectively, mainly related to lower technology costs, as well as lower facility related expenses of approximately $3.8 million and $7.6 million, respectively, mainly associated with real estate sales and facility consolidations, partially offset by higher promotion costs of approximately $0.9 million and $3.0 million, respectively.

Previous wording

For the three months ended March 31, 2024, Compensation and benefits costs increased compared to the three months ended March 31, 2023, primarily due to an increase in bonuses.

Current wording

For the three and six months ended June 30, 2024, Compensation and benefits costs increased compared to the three and six months ended June 30, 2023, primarily due to an increase in bonuses and employee benefit costs.

Previous wording

For the three months ended March 31, 2024, Outside services and other costs, which include services fulfilled by third parties, decreased compared to the three months ended March 31, 2023, primarily due to lower miscellaneous expenses of approximately $5.5 million, including promotional expenses, and lower bad debt expense of approximately $1.2 million.

Current wording

For the three months ended June 30, 2024, Outside services and other costs, which include services fulfilled by third parties, increased compared to the three months ended June 30, 2023, primarily due to higher miscellaneous expenses of approximately $2.1 million, including promotional expenses and professional service costs, partially offset by lower bad debt expense of approximately $0.3 million. For the six months ended June 30, 2024, Outside services and other costs, decreased compared to the six months ended June 30, 2023, primarily due to lower miscellaneous expenses of approximately $3.4 million, including lower product and finance costs, partially offset by higher technology costs, as well as lower bad debt expense of approximately $1.5 million.

Previous wording

For the three months ended March 31, 2024, Depreciation and amortization expense decreased compared to the three months ended March 31, 2023, reflecting the impact of fewer print facilities in 2024 compared to 2023.

Current wording

For the three and six months ended June 30, 2024, Depreciation and amortization expense decreased compared to the three and six months ended June 30, 2023, reflecting the impact of fewer print facilities in 2024 compared to 2023.

Previous wording

For the three months ended March 31, 2024, Integration and reorganization costs increased compared to the three months ended March 31, 2023, mainly due to an increase in other costs of $12.3 million, partially offset by a decrease in severance costs of $1.4 million. The change in other costs for the three months ended March 31, 2024 was primarily due to $9.7 million expensed as of the cease-use date related to certain licensed content and the absence in the first quarter of 2024 of a reversal of a withdrawal liability related to a multiemployer pension plan in the first quarter of 2023 of $2.0 million based on the settlement of the withdrawal liability.

Current wording

For the three and six months ended June 30, 2024, Integration and reorganization costs increased compared to the three and six months ended June 30, 2023, mainly due to an increase in other reorganization-related costs of $10.0 million and $22.3 million, respectively, and an increase in severance costs of $2.8 million and $1.3 million, respectively. For the three and six months ended June 30, 2024, the change in other reorganization-related costs primarily reflected a $9.9 million withdrawal liability which was expensed as a result of ceasing contributions to a multiemployer pension plan. In addition, for the six months ended June 30, 2024, the change in other reorganization-related costs also reflected $9.7 million expensed as of the cease-use date related to certain licensed content and the absence in the first quarter of 2024 of a reversal of a withdrawal liability related to a multiemployer pension plan in the first quarter of 2023 of $2.0 million based on the settlement of the withdrawal liability.

Previous wording

For the three months ended March 31, 2024, we recognized a net loss on the sale of assets of $0.9 million as part of our continued plan to monetize non-strategic assets. For the three months ended March 31, 2023, we recognized a net gain on the sale of assets of $16.3 million, primarily related to the sale of a production facility as part of our plan to monetize non-strategic assets.

Current wording

For the three and six months ended June 30, 2024, we recognized a net loss on the sale of assets of $0.2 million and $1.1 million, respectively, as part of our continued plan to monetize non-strategic assets. For the three and six months ended June 30, 2023, we recognized a net loss on the sale of assets of $0.1 million and a net gain on the sale of assets of $16.2 million, respectively. For the six months ended June 30, 2023, the net gain was primarily related to the sale of a production facility as part of our plan to monetize non-strategic assets.

Previous wording

For the three months ended March 31, 2024, the increase in Domestic Gannett Media segment Adjusted EBITDA compared to the three months ended March 31, 2023, was primarily attributable to the changes discussed above.

Current wording

For the three and six months ended June 30, 2024, the decrease in Domestic Gannett Media segment Adjusted EBITDA compared to the three and six months ended June 30, 2023, was primarily attributable to the changes discussed above.

Previous wording

For the three months ended March 31, 2024, Digital advertising revenues increased compared to the three months ended March 31, 2023, primarily due to an increase in local revenues, partially offset by lower spend on employment notifications.

Current wording

For the three and six months ended June 30, 2024, Digital advertising revenues increased compared to the three and six months ended June 30, 2023, primarily due to an increase in national and local revenues, partially offset by lower spend on employment notifications.

Previous wording

For the three months ended March 31, 2024, Digital-only subscription revenues increased compared to the three months ended March 31, 2023, primarily driven by the increase in digital-only paid subscriptions. Refer to "Key Performance Indicators" below for further discussion of digital-only paid subscriptions.

Current wording

For the three and six months ended June 30, 2024, Digital-only subscription revenues increased compared to the three and six months ended June 30, 2023, primarily driven by the increase in digital-only paid subscriptions. Refer to "Key Performance Indicators" below for further discussion of digital-only paid subscriptions.

Previous wording

For the three months ended March 31, 2024, Newsprint and ink costs decreased compared to the three months ended March 31, 2023, primarily due to a decrease in the cost of newsprint of approximately $1.0 million.

Current wording

For the three and six months ended June 30, 2024, Newsprint and ink costs decreased compared to the three and six months ended June 30, 2023, primarily due to a decrease in the cost of newsprint of approximately $0.8 million and $1.8 million, respectively.

Previous wording

For the three months ended March 31, 2024, Distribution costs decreased compared to the three months ended March 31, 2023, primarily due to the decline in revenues.

Current wording

For the three and six months ended June 30, 2024, Distribution costs decreased compared to the three and six months ended June 30, 2023, primarily due to the decline in print circulation revenues.

Previous wording

For the three months ended March 31, 2024, Outside services and other costs decreased compared to the three months ended March 31, 2023, primarily due to a decrease in facility related costs as well as lower bad debt expense of approximately $0.3 million.

Current wording

For the three and six months ended June 30, 2024, Outside services and other costs decreased compared to the three and six months ended June 30, 2023, primarily due to a decrease in technology related costs and for the six months ended June 30, 2024, the decline was also due to lower bad debt expense of approximately $0.3 million.