Gannett Co., Inc. Releases August Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the eighth period ended September 2, 2007 were 3.5 percent lower compared with the same period in 2006. For comparison purposes, the strengthening exchange rate of the British pound 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 declined 4.5 percent.
Pro forma newspaper advertising revenues in August were 6.0 percent lower compared with the eighth period in 2006. Pro forma assumes all properties presently owned were owned in both periods. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising would have been down 7.1 percent.
Pro forma local advertising revenues were down 4.6 percent in August. In the U.S., across all products, all major categories except home improvement lagged last year’s results. On a constant currency basis, local advertising would have declined 5.2 percent.
Pro forma classified revenues were 9.5 percent lower in the eighth period. On a constant currency basis, pro forma classified revenues would have been down 11.2 percent. Real estate revenues were 15.5 percent lower, employment revenues declined 11.9 percent and automotive revenues were down 10.5 percent. If the exchange rate had remained constant year-over-year, the declines would have been 17.1 percent for real estate, 13.5 percent for employment and
12.0 percent for automotive. Classified results at Newsquest in the UK were significantly better than in the U.S. community newspapers. At our U.S. community newspapers, pro forma classified revenues declined 15.2 percent for the eighth period reflecting declines of 25.8 percent in real estate revenues, 17.8 percent in employment revenues and 10.5 percent in automotive revenues. For comparison purposes, classified real estate revenues at our domestic community newspapers were up 9.5 percent for the eighth period in 2006. Classified revenues at our operations in the UK were 0.9 percent lower, in pounds. Increases of 3.1 percent in real estate and 6.9 percent in other classified revenues were offset by declines of 16.2 percent in automotive and 2.1 percent in employment.
Pro forma national advertising revenues for the eighth period were up 1.3 percent. At USA TODAY, advertising revenues were up 6.9 percent as paid ad pages of 236 were unchanged versus last year. In the eighth period at USA TODAY, there was strong growth in the automotive, telecommunications, advocacy, pharmaceutical and home and building categories while the packaged goods, retail, financial and real estate categories lagged last year.
Pro forma broadcasting revenues, which include Captivate, were 1.0 percent lower in August due primarily to significantly lower advertising demand related to politics that positively impacted the eighth period in 2006. Television revenues were 0.8 percent lower in the period as local revenues were 2.9 percent higher and national revenues were 9.7 percent lower. Political revenues were $4.0 million lower in the period while online revenues were 48.0 percent higher. Based on results to date and current pacings, television revenues for the third quarter of 2007 would lag last year’s third quarter in the mid-single digits. As a reminder, politically related advertising revenues in the third quarter of 2006 totaled over $19 million and were achieved primarily in September.
Other revenue in August increased 9.2 percent due primarily to higher revenues in commercial printing and PointRoll.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for August from Nielsen//Net Ratings. In August, Gannett’s domestic Web sites had 22.1 million unique visitors reaching 13.9 percent of the Internet audience.
On May 7, 2007, the company completed its sale of the Norwich (CT) Bulletin, the Rockford (IL) Register Star, the Observer-Dispatch in Utica, NY, and The Herald-Dispatch in Huntington, WV. In addition, the Chronicle-Tribune in Marion, IN, was contributed to the Gannett Foundation on May 21, 2007. The revenue and statistical data related to these properties has been excluded from all periods presented.
The pro forma broadcasting revenue statistics include results for KTVD-TV in Denver (acquired in late June 2006 and operated as a duopoly with KUSA-TV) and WATL-TV in Atlanta (acquired in August 2006 and operated as a duopoly with WXIA-TV). Ad linage for Newsquest, Clipper and Gannett Health Care Group 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.
Gannett Co., Inc. is a leading international news and information company that publishes 85 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 nearly 300 titles, including 18 daily newspapers, and a network of prize-winning Web sites. Gannett also operates 23 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 8 (August 6, 2007 - September 2, 2007) % 2007 2006 CHANGE CHANGE REVENUES: Advertising: Local $ 155,873,000 $ 163,411,000 $ (7,538,000) (4.6) National 51,832,000 51,156,000 676,000 1.3 Classified 153,105,000 169,100,000 (15,995,000) (9.5) ------------- ------------ ----------- ---- Total Advertising $ 360,810,000 $ 383,667,000 $ (22,857,000) (6.0) ============= ============ =========== ==== Circulation 95,282,000 95,572,000 (290,000) (0.3) Other revenue 39,936,000 36,559,000 3,377,000 9.2 Broadcasting 59,741,000 60,355,000 (614,000) (1.0) ------------- ------------ ----------- ---- Total Revenue $ 555,769,000 $ 576,153,000 $ (20,384,000) (3.5) ============= ============ =========== ==== VOLUME: Newspaper Inches: Local 2,280,587 2,391,622 (111,035) (4.6) National 191,160 199,367 (8,207) (4.1) Classified 3,818,761 4,256,219 (437,458) (10.3) ------------- ------------ ----------- ---- Total ROP 6,290,508 6,847,208 (556,700) (8.1) ============= ============ =========== ==== Preprint Distribution (in thousands) 862,145 874,347 (12,202) (1.4) ============= ============ =========== ==== NET PAID CIRCULATION: Morning (w/USAT) 6,507,872 6,623,321 (115,449) (1.7) Evening 836,909 865,636 (28,727) (3.3) ------------- ------------ ----------- ---- Total Daily 7,344,781 7,488,957 (144,176) (1.9) ============= ============ =========== ==== Sunday 5,721,260 5,966,280 (245,020) (4.1) ============= ============ =========== ==== Year-to-Date through September 2, 2007 % 2007 2006 CHANGE CHANGE REVENUES: Advertising: Local $ 1,403,770,000 $ 1,435,315,000 $ (31,545,000) (2.2) National 486,112,000 506,151,000 (20,039,000) (4.0) Classified 1,382,278,000 1,474,370,000 (92,092,000) (6.2) ------------- ------------ ------------ ---- Total Advertising $ 3,272,160,000 $ 3,415,836,000 $ (143,676,000) (4.2) ============= ============= ============ ==== Circulation 836,926,000 839,269,000 (2,343,000) (0.3) Other revenue 330,533,000 305,319,000 25,214,000 8.3 Broadcasting 512,423,000 542,742,000 (30,319,000) (5.6) ------------- ------------ ------------ ---- Total Revenue $ 4,952,042,000 $ 5,103,166,000 $ (151,124,000) (3.0) ============= ============= ============ ==== VOLUME: Newspaper Inches: Local 20,427,642 21,431,763 (1,004,121) (4.7) National 1,936,587 2,132,051 (195,464) (9.2) Classified 33,516,386 36,566,214 (3,049,828) (8.3) ------------- ------------- ------------ ---- Total ROP 55,880,615 60,130,028 (4,249,413) (7.1) ============= ============= ============ ==== Preprint Distribution (in thousands) 7,365,117 7,546,802 (181,685) (2.4) ============= ============= ============ ==== NET PAID CIRCULATION: Morning (w/USAT) 6,697,277 6,802,248 (104,971) (1.5) Evening 861,438 886,556 (25,118) (2.8) ------------- ------------- ------------ ---- Total Daily 7,558,715 7,688,804 (130,089) (1.7) ============= ============= ============ ==== Sunday 5,864,780 6,082,786 (218,006) (3.6) ============= ============= ============ ====
Note: The above revenue amounts and statistics have been restated to include all companies presently owned, including KTVD-TV in Denver (acquired in late June 2006 and operated as a duopoly along with KUSA-TV) and WATL-TV in Atlanta (acquired in August 2006 and operated as a duopoly along with WXIA-TV). Revenue amounts and statistics for the Norwich (CT) Bulletin, the Rockford (IL) Register Star, the Observer-Dispatch in Utica, NY and The Herald-Dispatch in Huntington, WV, which were sold in May 2007, are excluded from all periods presented. The revenue and statistical data related to the former Gannett-owned newspapers the Chronicle-Tribune in Marion, IN, and the Muskogee (OK) Phoenix have been excluded from all periods presented. The two newspapers were contributed to the Gannett Foundation in May 2007 and April 2006, respectively.
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 nearly 300 titles, including paid and unpaid daily and non-daily products. Circulation volume statistics for Newsquest’s 17 paid-for daily newspapers are included above. Circulation volume statistics for the 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 and advertising linage statistics for non-daily products, including Gannett Healthcare Group and Clipper Magazine are not reflected above.
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Gannett Online Internet Audience August 2007 Nielsen//Net Ratings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 22,131,000 13.9%