Greetings, and welcome to the Gannett 2Q Earnings Conference Call. [Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Matt Esposito of Investor Relations. Thank you, and over to you, sir.

Thank you. Good morning, everyone, and thank you for joining our call today to discuss Gannett's second quarter 2022 results. Presenting on today's call will be Mike Reed, Chairman and Chief Executive Officer; and Doug Horne, Chief Financial Officer. During this call, we will discuss Gannett's financial results for the quarter. If you navigate to the Gannett website, you will find that we have posted an earnings supplement in addition to our earlier press release. We will be referencing it today on the call as it provides you with additional detail on this quarter's performance. Before we begin, please let me remind you that this call is being recorded. In addition, certain statements made during this call are or may be deemed to be forward-looking statements, including those with respect to future results and events and are based upon current expectations. These statements involve risks and uncertainties that may cause actual results and events to differ materially from those discussed today. We encourage you to read the cautionary statement regarding forward-looking statements in the earnings supplement as well as the risk factors described in Gannett's filings made with the SEC. Except as required by law, we undertake no obligation to publicly update or correct any of the forward-looking statements made during this call. In addition, we will be discussing non-GAAP financial information during the call, including same-store revenues, free cash flow, adjusted EBITDA and adjusted net income attributable to Gannett. You can find reconciliations of our non-GAAP measures to the most comparable U.S. GAAP measures in the earnings supplement. Lastly, I would like to remind you that nothing on this call constitutes an offer to sell or a solicitation of an offer to purchase any interest in Gannett. The webcast and audio cast are copyrighted material of Gannett and may not be duplicated, reproduced or rebroadcasted without prior written consent. With that, I would like to turn the call over to Mike Reed, Gannett's Chairman and CEO.

Thanks, Matt, and good morning, everyone. Thanks for joining our call this morning. Like many companies across many industries, we experienced a very challenging second quarter, resulting from the difficult economic environment and rising pressures on the consumer. On the top line, weakening consumer demand led to larger-than-expected declines in print subscription revenues, effectively pulling forward expected print revenue losses from future years. In addition, the digital advertising market came under pressure during the quarter. From a cost perspective, the tight labor market affected our ability to keep circulation routes staffed as well as increased the cost of labor as we hire digitally savvy talent for our digital transformation. In addition, newsprint, transportation and energy costs also rose negatively impacting both our Q2 results and our revised guidance for the full year takes into account all of these things and our expectations for the back half of the year. However, there were some meaningful accomplishments in the second quarter that are clear indicators of the continued progress on our long-term growth initiatives. Our digital subscription business continued to grow at a strong pace, including both new paid subscribers and increased revenue, and we saw a slight increase in ARPU. In addition, our digital marketing services business continued to perform well. We realized strong revenue and customer growth, increased ARPU and achieved strong adjusted EBITDA in that business. The structural reorganization we announced in early June is also driving positive momentum for our company. By removing internal friction points and aligning talent expertise with the right parts of our business, we believe we are now more effective in both navigating near-term challenges and driving our long-term growth strategies. Given that we do not expect the near-term pressures to abate in the second half of 2022, we have moved quickly to implement…

Thank you, Mike, and good morning, everybody. As Mike mentioned, our top line was negatively impacted in the second quarter as a result of a slowdown in digital advertising spend and increased price sensitivity from our print subscribers and to a lesser extent, unfavorable foreign currency impacts. For Q2, total operating revenues were $748.7 million, a decrease of 6.9% as compared to the prior year quarter. On a same-store basis, operating revenues decreased 6.3% year-over-year as compared to down 2.5% year-over-year in the first quarter. Same-store revenue trends in our digital marketing solutions segment held steady from Q1, growing 8.2% year-over-year, but the media segment faced increasing headwinds in digital media and in our traditional print businesses. Given the strength in the dollar relative to the U.K. pound, currency translation negatively impacted our reported revenue by $7.6 million or about 95 basis points as compared to the prior year. Despite the challenging environment, total digital revenues continued to grow compared to the prior year on a same-store basis, up 1.5% year-over-year in Q2. Total digital revenues were $261.8 million in Q2 and now account for 35% of total revenue. Adjusted EBITDA totaled $50.9 million in the quarter, down 56.1% year-over-year. Adjusted EBITDA margin was 6.8% versus the 14.4% recorded in the prior year quarter. The decline in adjusted EBITDA year-over-year was caused by the unfavorable macroeconomic landscape, along with the secular pressures of our print revenue, which were accelerated by distribution shortages and greater price sensitivity in our print customer base. Expenses included in adjusted EBITDA were $697.8 million, which increased 1.4% year-over-year, reflecting approximately $15 million from acquisitions made in our Newsquest entity and the ongoing inflationary pressures. Specifically, the inflationary impact resulted in an estimated $23 million year-over-year and an increase in costs, tied to distribution, newsprint, fuel,…

Ladies and gentlemen, we have reached to the end of the question-and-answer session, and I'd like to turn the call back to Gannett's CEO, Mike Reed for his closing remarks. Over to you, sir.

It is my tremendous honor to lead Gannett. Staying true to our culture, values and strategy has enabled us to successfully navigate through various economic environments in the past. And I know the spirit of collaboration will propel us forward as we navigate the complicated environment ahead. We are making the difficult choices to align our teams and our resources to further solidify Gannett and our commitment to our mission and our strategy. We recognize the coming months will be challenging, but these macroeconomic headwinds demand we act with urgency and they will pass. We believe our subscription-led business model, robust balance sheet and experienced management team puts us in a solid position to weather this downturn and deliver value to our shareholders. Most importantly, the significant progress that we have already achieved on our long-term digital growth strategy demonstrates the traction we have gained validates the premise of our plan and represents just the beginning of the value we expect to capture over time. I continue to be optimistic and feel we have a robust opportunity in front of us. We appreciate your interest in Gannett, and we look forward to updating you on our progress on our next earnings call. Thank you all for joining today.

Thank you very much, sir. Ladies and gentlemen, this concludes today's conference.