Digital media firm People Inc's Q2 revenue falls less than expected
Digital media firm People Inc's Q2 revenue falls less than expected
Overview
US digital media firm's Q2 revenue fell 1%, less than analyst expectations
Adjusted EBITDA for Q2 rose 15% year-over-year, driven by expanding digital margins
Company authorized repurchase of an additional 10 mln shares and agreed to sell fund stake for $189 mln
Outlook
Company expects corporate consolidation to complete in Q1 2027 with annual run-rate expense of $45 mln
Company expects sale of Limited Partner stake to close in Q3
Result Drivers
DIGITAL REVENUE GROWTH - Digital revenue rose 6%, driven by 23% growth in licensing and other revenue, improved performance from Apple News+, content syndication partners, and the Meta content partnership
AFFILIATE COMMERCE - Performance marketing revenue increased 13%, mainly due to 11% affiliate commerce growth from higher transaction volumes
PRINT REVENUE DECLINE - Print revenue fell 16% due to ongoing portfolio optimization and continued migration of audience and advertising spend from print to digital
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Revenue | Beat | $436.7 mln | $433.04 mln (10 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the online services peer group is "buy"
Wall Street's median 12-month price target for People Incorporated is $50.00, about 20.3% above its July 31 closing price of $41.57
The stock recently traded at 908 times the next 12-month earnings vs. a P/E of 94 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)