Gannett Releases April Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the fourth period ended April 30, 2006 declined 1.3 percent resulting from higher ad demand at its broadcasting segment and revenue gains at its domestic newspapers offset by significantly softer ad demand at its UK properties. For comparison purposes, the exchange rate of Sterling year-over-year also affected results for the company’s UK operations. If the exchange rate had remained constant year-over-year, total pro forma operating revenues would have been 0.4 percent lower for the period.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in the fourth period declined 2.0 percent compared with the same period in 2005 on a 1.5 percent decline in ROP volume and a 7.1 percent decline in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have been down 0.8 percent. Newspaper advertising category results in part reflect the impact of a later Easter this year. As in the past, we recommend combining March and April results for comparison purposes.
Pro forma local advertising revenues were 0.7 percent lower on a 1.7 percent decline in ROP ad volume in April. The performance of the company’s small and medium-sized advertisers in its domestic newspapers outpaced the revenue performance of its largest advertisers. In the U.S., across all products, local ad revenue gains were achieved in the health, financial and restaurant categories while the department stores, furniture, consumer electronics, entertainment, grocery, telecommunications and home improvement categories lagged last year’s comparable period. On a constant currency basis, pro forma local advertising would have been flat.
Pro forma classified revenues declined 3.9 percent in the fourth period on a 1.4 percent decrease in ROP ad volume. On a constant currency basis, pro forma classified revenues would have been 1.9 percent lower in April. Real estate revenues were up 5.6 percent while employment and automotive revenues were down 7.3 percent and 15.8 percent, respectively, compared to last year’s fourth period. On a constant currency basis, real estate revenues would have been up 8.0 percent, employment revenues would have been down 5.4 percent and automotive revenues would have been 14.3 percent lower. Classified results in our domestic community newspapers were significantly better than in the UK. In the U.S., pro forma classified revenues at the community newspapers were up 1.5 percent in the fourth period comprised of increases of 11.5 percent and 1.4 percent in real estate and employment revenues, respectively, and an automotive decline of 11.4 percent.
Pro forma national advertising revenues in April were 0.5 percent lower on a 2.5 percent decline in ad volume. National volume at the company’s local domestic newspapers was 3.0 percent lower in the period. At USA TODAY, advertising revenues were 0.4 percent higher on a decline in paid ad pages to 416 from 434. For the fourth period, at USA TODAY, the automotive, home and building, real estate and pharmaceutical categories were positive while the entertainment, technology, travel and financial categories lagged last year’s results.
Pro forma broadcasting revenues, which include Captivate, increased 3.6 percent in the period. Television revenues were up 2.0 percent for the fourth period. Local revenues were up 3.4 percent while national revenues were 1.9 percent lower. Based on results to date and current pacings for the second quarter, television revenues are ahead of last year’s second quarter results in the low single digits.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for April from Nielsen//Net Ratings. In April, Gannett’s domestic Websites had approximately 23.2 million unique visitors reaching over 15 percent of the Internet audience.
The pro forma advertising and circulation revenue statistics include the results for Exchange & Mart and Auto Exchange (acquired in September 2005), Tallahassee (acquired August 29, 2005),
100 percent of the Detroit Newspaper Partnership (established August 2005), Mint Magazine (acquired in July 2005) and Hometown Communications (acquired March 31, 2005). The pro forma other revenue statistics include the results for PointRoll, Inc. (acquired in June 2005). Ad linage for Newsquest, Clipper and NurseWeek are not included in the ad volume statistics. Circulation volume numbers for Newsquest’s paid daily newspapers are included in the enclosed statistics, but volume from unpaid daily and non-daily publications is not included in the circulation volume statistics. The revenue and statistical data related to the former Gannett owned newspapers in Bellingham (WA), Olympia (WA) and Boise (ID) as well as the Muskogee (OK) Phoenix, which was contributed to the Gannett Foundation in April 2006, has been excluded from all periods presented.
Gannett Co., Inc. is a leading international news and information company that publishes 90 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns nearly 1,000 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. Gannett subsidiary Newsquest is the United Kingdom’s second largest regional newspaper company. Newsquest publishes more than 300 titles, including 17 daily newspapers, and a network of prize-winning Web sites. Gannett also operates 21 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USATODAY.com, one of the most popular news sites on the Web.
Certain statements in this press release may be forward looking in nature or “forward looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The forward looking statements contained in this press release are subject to a number of risks, trends and uncertainties that could cause actual performance to differ materially from these forward looking statements. A number of those risks, trends and uncertainties are discussed in the company’s SEC reports, including the company’s annual report on Form 10-K and quarterly reports on Form 10-Q. Any forward looking statements in this press release should be evaluated in light of these important risk factors.
Gannett is not responsible for updating the information contained in this press release beyond the published date, or for changes made to this press release by wire services, Internet service providers or other media.
Contact:
Jeff Heinz
Director, Investor Relations
703-854-6917
jheinz@gannett.com
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
Period 4 (Mar. 27, 2006 - Apr. 30, 2006)
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 207,945,000 $ 209,378,000 $ (1,433,000) (0.7)
National 77,690,000 78,087,000 (397,000) (0.5)
Classified 196,273,000 204,155,000 (7,882,000) (3.9)
------------- ------------- ----------- ----
Total Advertising $ 481,908,000 $ 491,620,000 $ (9,712,000) (2.0)
============= ============= =========== ====
Circulation 119,420,000 123,756,000 (4,336,000) (3.5)
Other revenue 43,000,000 41,386,000 1,614,000 3.9
Broadcasting 77,333,000 74,648,000 2,685,000 3.6
------------- ------------- ----------- ----
Total Revenue $ 721,661,000 $ 731,410,000 $ (9,749,000) (1.3)
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 3,309,410 3,366,037 (56,627) (1.7)
National 376,694 386,520 (9,826) (2.5)
Classified 5,370,010 5,443,548 (73,538) (1.4)
------------- ------------- ----------- ----
Total ROP 9,056,114 9,196,105 (139,991) (1.5)
============= ============= =========== ====
Preprint Distribution
(in thousands) 1,090,610 1,174,152 (83,542) (7.1)
============= ============= =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,133,947 7,272,290 (138,343) (1.9)
Evening 895,679 935,069 (39,390) (4.2)
------------- ------------- ----------- ----
Total Daily 8,029,626 8,207,359 (177,733) (2.2)
============= ============= =========== ====
Sunday 6,340,764 6,523,577 (182,813) (2.8)
============= ============= =========== ====
Year-to-Date through Apr. 30, 2006
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 730,949,000 $ 741,395,000 $ (10,446,000) (1.4)
National 279,989,000 283,866,000 (3,877,000) (1.4)
Classified 736,306,000 755,122,000 (18,816,000) (2.5)
------------- ------------- ----------- ----
Total Advertising $ 1,747,244,000 $ 1,780,383,000 $ (33,139,000) (1.9)
============= ============= =========== ====
Circulation 443,006,000 455,601,000 (12,595,000) (2.8)
Other revenue 151,926,000 146,489,000 5,437,000 3.7
Broadcasting 259,908,000 239,205,000 20,703,000 8.7
------------- ------------- ----------- ----
Total Revenue $ 2,602,084,000 $ 2,621,678,000 $ (19,594,000) (0.7)
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 11,359,717 11,625,685 (265,968) (2.3)
National 1,334,736 1,397,008 (62,272) (4.5)
Classified 18,654,156 18,974,768 (320,612) (1.7)
------------- ------------- ----------- ----
Total ROP 31,348,609 31,997,461 (648,852) (2.0)
============= ============= =========== ====
Preprint Distribution
(in thousands) 3,995,196 4,125,028 (129,832) (3.1)
============= ============= =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,086,987 7,197,713 (110,726) (1.5)
Evening 903,362 942,775 (39,413) (4.2)
------------- ------------- ----------- ----
Total Daily 7,990,349 8,140,488 (150,139) (1.8)
============= ============= =========== ====
Sunday 6,380,672 6,523,649 (142,977) (2.2)
============= ============= =========== ====
Note: The above revenue amounts and statistics have been restated to include all companies presently owned, including the Exchange & Mart and Auto Exchange (non-daily publications acquired in September 2005), the Tallahassee Democrat (acquired August 29, 2005), 100% of the Detroit Newspaper Partnership (established August 2005), Mint Magazine (acquired in July 2005), PointRoll, Inc. (acquired in June 2005) and Hometown Communications (acquired in late March 2005). PointRoll is a marketing services company with a suite of media products that delivers enhanced online marketing opportunities for advertisers, agencies and online publishers. PointRoll is included above in Other revenue. Hometown is a community publishing company with one daily newspaper, 62 non-daily community newspapers, 24 community telephone directories and other specialty and niche publications. The revenue and statistical data related to the former Gannett owned newspapers in Bellingham (WA), Olympia (WA) and Boise (ID) as well as the Muskogee (OK) Phoenix which was contributed to the Gannett Foundation in April 2006, has been excluded from all periods presented.
Operating results from the company’s newspaper in Tucson, which participates in a joint operating agency, are accounted for under the equity method of accounting and are reported as a single amount in other operating revenues. Advertising linage statistics from this newspaper are not included above, however, circulation volume statistics are included.
Newsquest is a regional newspaper publisher in the United Kingdom with more than 300 titles, including paid and unpaid daily and non-daily products. Circulation volume statistics for Newsquest’s 17 paid daily newspapers are included above. Circulation volume statistics for Sunday Herald are included above in the Sunday statistics. Circulation volume statistics for Newsquest’s unpaid daily and non-daily publications are not reflected above. Advertising linage for Newsquest publications is not reflected above.
Circulation volume statistics for Detroit Free Press, a morning newspaper, are reflected above. Circulation volume statistics for The Detroit News, an evening newspaper, are not reflected above. Circulation volume and advertising linage statistics for non-daily products, including NurseWeek and Clipper Magazine are not reflected above.
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Gannett Online Internet Audience April 2006Nielsen//Net Ratings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 23,177,000 15.1%