Gannett Executives Speak at Media Week Conferences
NEW YORK, NY – Gannett executives at the Credit Suisse Media Week Conference today discussed the company’s strategic initiatives, including the Information Center, and reviewed the company’s outlook for 2007.
The executives also will speak at the UBS Media Week Conference later today.
Craig Dubow, chairman, president and CEO, said: “We view the changing media landscape as a great opportunity for Gannett. We are focusing on a number of strategic initiatives that embrace those changes and move us forward. Central to our plan is enhancing our core while growing a major international digital business.”
Dubow discussed Gannett’s Information Center initiative and the progress of Gannett Digital.
Sue Clark-Johnson, president of the Newspaper Division, said: “We are completely transforming our newspaper operations in the way we gather and deliver information. Our Information Centers enable us to connect to the community, engage readers and provide a more customer-centric approach for our advertisers. In our test markets, Web traffic has accelerated after the launch of the Information Center as did the pace of revenue growth,” she said.
Craig Moon, president and publisher of USA TODAY, said: “USA TODAY’S legacy – and its future – are centered on providing accessibility to information in easy-to-use formats such as blogs, podcasts, mobile and ‘My USATODAY’.”
“USATODAY.com’s audience continues to grow. In addition, its display advertising growth is exceeding the industry average,” Moon said. “In 2007, we expect advertising to increase at USATODAY.com in the range of 18 percent to 20 percent.”
Roger Ogden, president and CEO of Gannett Broadcasting, said: “This year we saw near-record levels of political advertising. The strength of our local news product, along with great inventory control, allowed us to accommodate this huge volume while staying close to our core customers. Also, we are very encouraged by the strong growth of digital and new business initiatives, and expect similar growth next year.”
Reporting on Newsquest’s results, Gracia Martore, executive vice president and chief financial officer, said: “Newsquest has had a challenging year but signs point to stabilization and modest recovery. An improving revenue trend line, coupled with strong expense restructuring, has resulted in a positive impact to the bottom line.”
Martore also reported on company-wide results for 2006 and assumptions for 2007. The company expects fourth quarter 2006 earnings per share to be toward the higher end of the range of $1.46 to $1.49, she said.
Speeches by the Gannett executives will be available by Webcast for 30 days at www.gannett.com.
Attached to this release and posted on the company’s Web site under Investor Relations are Gannett’s operating assumptions for 2007.
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 nearly 300 titles, including 17 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, including the operating assumptions for 2007, may be deemed “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this press release, including the operating assumptions, are subject to a number of risks and uncertainties that could adversely affect the company’s ability to obtain these results include, without limitation, the following factors: (a) increased consolidation among major retailers or other events which may adversely affect business operations of major customers and depress the level of local and national advertising; (b) an economic downturn in some or all of the company’s principal newspaper or broadcasting markets leading to decreased circulation or local, national or classified advertising; (c) a decline in general newspaper readership and/or advertiser patterns as a result of competitive alternative media or other factors; (d) an increase in newsprint or syndication programming costs over the levels anticipated; (e) labor disputes which may cause revenue declines or increased labor costs; (f) acquisitions of new businesses or dispositions of existing businesses; (g) a decline in viewership of major networks and local news programming; (h) rapid technological changes and frequent new product introductions prevalent in electronic publishing; (i) an increase in interest rates; (j) a weakening in the Sterling-to-U.S. dollar exchange rate; and (k) general economic, political and business conditions. Other risk factors that could cause actual results to differ materially from these forward-looking statements are disclosed from time to time in the Company’s current and periodic SEC reports. 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 the press release beyond the published date, or for changes made to the press release by wire services, Internet service providers or other media, except as required by law.
For investor inquiries contact:
Jeff Heinz
Director, Investor Relations
(703) 854-6917
jheinz@gannett.com
For media inquiries contact:
Tara Connell
Vice President, Corporate Communications
(703) 854-6049
tjconnel@gannett.com
GANNETT CO., INC. OPERATING ASSUMPTIONS - 2007 (Based on 52 weeks in 2006 and 2007; 2006 will be a 53 week year) NEWSPAPERS (Excluding USA TODAY, USA Weekend and Newsquest) A. Advertising Ad revenues will be up low single digits. B. Circulation Circulation revenues are expected to be down slightly. C. Newsprint 1. Consumption is expected to be down a few percent. 2. Purchase Prices - They are budgeted to be down low single digits. D. Other Expenses 1. Total head count will be down modestly with a small addition to employees in revenue producing areas. 2. Pension expense will be up $10 million from 2006. 3. Health care costs will be up in the low to mid single digits. 4. All other costs will decrease modestly. NEWSQUEST (in Sterling) A. Advertising revenues are expected to be up low single digits. B. Circulation revenue is expected to be down low single digits. USA TODAY A. Advertising 1. Advertising pages are expected to be down slightly. 2. Rates will be up in the 6 percent range. B. Circulation 1. Volume is expected to be down slightly. 2. There are no current plans to increase circulation prices in 2007. BROADCAST (Ex. Captivate) A. Revenues expected to be down in the low single digits due to Olympic and political ad spending in 2006. B. Costs are expected to be flat to up slightly. CONSOLIDATED GANNETT (Including Acquisitions) A. Capital Expenditures 1. 2007 Plan $200,000,000 2. 2006 Estimate $195,000,000 - $205,000,000 B. Depreciation 1. 2007 Plan $245,000,000 2. 2006 Estimate $242,000,000 C. Amortization of Intangibles (Goodwill and Other) 1. 2007 Plan $35,400,000 2. 2006 Estimate $34,000,000 D. Interest Expense We expect our debt at the beginning of the year to be about $5.3 billion. For budget purposes, we have assumed that all of our free cash flow will be used to pay down debt. E. Tax Rate The tax rate for 2007 will be approximately 33.4%, depending on the mix of earnings. F. Stock Based Compensation Stock option expensing will be in the same range as 2006.
Certain factors affecting forward-looking statements
Certain statements in this press release, including the operating assumptions for 2007, may be deemed “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The forward-looking statements contained in this press release, including the operating assumptions, are subject to a number of risks and uncertainties that could adversely affect the company’s ability to obtain these results include, without limitation, the following factors: (a) increased consolidation among major retailers or other events which may adversely affect business operations of major customers and depress the level of local and national advertising; (b) an economic downturn in some or all of the company’s principal newspaper or broadcasting markets leading to decreased circulation or local, national or classified advertising; (c) a decline in general newspaper readership and/or advertiser patterns as a result of competitive alternative media or other factors; (d) an increase in newsprint or syndication programming costs over the levels anticipated; (e) labor disputes which may cause revenue declines or increased labor costs; (f) acquisitions of new businesses or dispositions of existing businesses; (g) a decline in viewership of major networks and local news programming; (h) rapid technological changes and frequent new product introductions prevalent in electronic publishing; (i) an increase in interest rates; (j) a weakening in the Sterling-to-U.S. dollar exchange rate; and (k) general economic, political and business conditions. Other risk factors that could cause actual results to differ materially from these forward-looking statements are disclosed from time to time in the Company’s current and periodic SEC reports. 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 the press release beyond the published date, or for changes made to the press release by wire services, Internet service providers or other media, except as required by law.