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 May 6, 2007 declined 2.0 percent compared with the fourth 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 been 3.6 percent lower.
Pro forma newspaper advertising revenues in April were 3.1 percent lower compared with April 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 4.9 percent lower. Newspaper advertising category results reflect, in part, the impact of an earlier Easter this year. As in the past, we recommend combining March and April results for comparison purposes.
Pro forma local advertising revenues declined 1.0 percent in the fourth period. In the U.S., across all products, all major categories excluding telecommunications and home improvement lagged last year. On a constant currency basis, local advertising would have been 2.1 percent lower.
Pro forma classified revenues declined 6.2 percent in the fourth period. On a constant currency basis, pro forma classified revenues would have been 9.0 percent lower. Real estate revenues were down 6.5 percent, employment revenues were 5.4 percent lower, and automotive revenues declined 14.8 percent while other classified revenues were 1.0 percent higher. If the exchange rate had remained constant year-over-year, real estate would have been 9.7 percent lower, employment would have been down 7.9 percent and automotive would have declined 17.0 percent. Classified results in the UK were significantly better than in the U.S. community newspapers. At our U.S. community newspapers, pro forma classified revenues were 11.7 percent lower for the fourth period reflecting declines of 15.2 percent in real estate revenues, 11.9 percent in employment revenues and 16.7 percent in automotive revenues. Classified revenues at Newsquest in the UK were less than 1 percent lower, in pounds. Increases in real estate of 3.7 percent and employment of 5.8 percent were offset by a decline of 18.3 percent in automotive.
Pro forma national advertising revenues for the fourth period were 0.9 percent lower. At USA TODAY, advertising revenues declined 1.7 percent on paid ad pages of 381 versus 414 last year. USA WEEKEND, our weekly newspaper magazine, experienced higher national advertising revenues in the period. In the fourth period at USA TODAY, significant growth in the
technology, travel, telecommunications, home and building, retail and credit card categories was offset by weakness in the entertainment, automotive, financial, packaged goods and real estate categories.
Pro forma broadcasting revenues, which include Captivate, were 5.1 percent lower for April. Almost half of the decline was due to the absence of significant political revenue that benefited last year’s fourth period. Television revenues were down 5.1 percent in the period reflecting declines of 4.7 percent in local revenues and 9.1 percent in national revenues. Based on results to date and current pacings, television revenues for the second quarter of 2007 would lag last year’s second quarter in the high single digits.
Other revenue increased 12.1 percent in the fourth period due, in part, 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 April from Nielsen//Net Ratings. In April, Gannett’s domestic Web sites had approximately 23.1 million unique visitors reaching 14.7 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. Operating results for these properties are included in the results through
Period 4 but will be excluded from results beginning with Period 5.
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. The revenue and statistical data related to 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 86 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 4 (April 2, 2007 - May 6, 2007)
%
2007 2006 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 204,254,000 $ 206,230,000 $ (1,976,000) (1.0)
National 78,158,000 78,832,000 (674,000) (0.9)
Classified 184,692,000 196,985,000 (12,293,000) (6.2)
------------- ------------ ----------- ----
Total Advertising $ 467,104,000 $ 482,047,000 $ (14,943,000) (3.1)
============= ============ =========== ====
Circulation 118,502,000 119,440,000 (938,000) (0.8)
Other revenue 48,036,000 42,863,000 5,173,000 12.1
Broadcasting 77,603,000 81,759,000 (4,156,000) (5.1)
------------- ------------ ----------- ----
Total Revenue $ 711,245,000 $ 726,109,000 $ (14,864,000) (2.0)
============= ============ =========== ====
VOLUME:
Newspaper Inches:
Local 3,172,471 3,299,909 (127,438) (3.9)
National 359,785 376,694 (16,909) (4.5)
Classified 4,954,485 5,384,066 (429,581) (8.0)
------------- ------------ ----------- ----
Total ROP 8,486,741 9,060,669 (573,928) (6.3)
============= ============ =========== ====
Preprint Distribution
(in thousands) 1,047,609 1,089,610 (42,001) (3.9)
============= ============ =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,011,963 7,133,627 (121,664) (1.7)
Evening 868,737 896,089 (27,352) (3.1)
------------- ------------ ----------- ----
Total Daily 7,880,700 8,029,716 (149,016) (1.9)
============= ============ =========== ====
Sunday 6,079,113 6,335,131 (256,018) (4.0)
============= ============ =========== ====
Year-to-Date through May 6, 2007
%
2007 2006 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 726,601,000 $ 725,167,000 $ 1,434,000 0.2
National 273,480,000 283,910,000 (10,430,000) (3.7)
Classified 709,901,000 738,699,000 (28,798,000) (3.9)
------------- ------------- ----------- ----
Total Advertising $ 1,709,982,000 $ 1,747,776,000 $ (37,794,000) (2.2)
============= ============= =========== ====
Circulation 442,489,000 443,317,000 (828,000) (0.2)
Other revenue 169,308,000 151,133,000 18,175,000 12.0
Broadcasting 260,662,000 277,036,000 (16,374,000) (5.9)
------------- ------------- ----------- ----
Total Revenue $ 2,582,441,000 $ 2,619,262,000 $ (36,821,000) (1.4)
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 10,991,808 11,323,747 (331,939) (2.9)
National 1,212,327 1,335,588 (123,261) (9.2)
Classified 17,411,662 18,667,584 (1,255,922) (6.7)
------------- ------------- ----------- ----
Total ROP 29,615,797 31,326,919 (1,711,122) (5.5)
============= ============= =========== ====
Preprint Distribution
(in thousands) 3,899,264 3,997,442 (98,178) (2.5)
============= ============= =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,024,227 7,100,591 (76,364) (1.1)
Evening 875,029 903,960 (28,931) (3.2)
------------- ------------- ----------- ----
Total Daily 7,899,256 8,004,551 (105,295) (1.3)
============= ============= =========== ====
Sunday 6,190,381 6,387,433 (197,052) (3.1)
============= ============= =========== ====
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), WATL-TV in Atlanta (acquired in August 2006 and operated as a duopoly along with WXIA-TV). The revenue and statistical data related to the former Gannett owned newspaper the Muskogee (OK) Phoenix which was contributed to the Gannett Foundation in April 2006, has been excluded from all periods presented. Operating results for the Norwich (CT) Bulletin, the Rockford (IL) Register Star, the Observer-Dispatch in Utica, NY, and The Herald-Dispatch in Huntington, WV, are included above but will be excluded from results beginning in period 5 as per the announcement of the completion of their sale in May 2007.
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.
--------------------------------------------------------------------------
Gannett Online Internet Audience April 2007Nielsen//Net Ratings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 23,131,000 14.7%