Gannett Releases August Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the eighth period ended August 29, 2004 increased 11.9 percent, benefiting from strength in national and classified advertising in the newspaper segment and Summer Olympics-related advertising on the company’s NBC stations. For comparison purposes, the continued increase in the exchange rate of Sterling year-over-year 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 increased 9.6 percent for the period.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in August increased 10.7 percent compared with the same period in 2003 on a slight increase in ROP volume and a 3.7 percent advance in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have advanced 8.2 percent.
Pro forma classified revenues rose 13.8 percent in the eighth period on a 1.5 percent increase in ROP ad volume. If the exchange rate had remained constant year-over-year, pro forma classified revenues would have increased 9.6 percent for August. Employment and real estate revenues increased 24.1 percent and 17.1 percent, respectively. Automotive declined 1.3 percent compared to last year. On a constant currency basis, employment and real estate revenues would have increased 18.4 percent and 12.5 percent, respectively, while automotive would have decreased 3.6 percent.
Pro forma local advertising revenues increased 6.0 percent on a 1.2 percent decline in ROP ad volume in August. 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 financial, home improvement, health and entertainment categories while there was softness in department stores, grocery, furniture, telecommunications and the consumer electronics categories. On a constant currency basis, pro forma local advertising would have increased 4.6 percent.
Pro forma national advertising revenues in August jumped 15.9 percent on a 3.2 percent decline in ad volume. National volume at the company’s local domestic newspapers fell 5.9 percent in the period. USA WEEKEND, our weekly newspaper magazine, and our UK operations experienced significantly higher national ad revenues in the period. While our revenue statistics include their results, USA WEEKEND’s and Newsquest’s ad volume is not included in the linage numbers. Benefiting in part from Summer Olympics-related advertising demand, USA TODAY’s advertising revenues were up 22.8 percent on an 18.9 percent increase in paid ad pages to 319 from 268. For the eighth period, at USA TODAY, results for all major categories, excluding travel and retail categories, were higher. For the year-to-date, USA TODAY’s paid advertising pages totaled 3,075 versus 2,952 last year, a 4.2 percent increase, and ad revenues were 14.0 percent higher.
Pro forma broadcasting revenues, which include Captivate, increased 37.5 percent in the period, propelled by the Olympics-related ad spending. Television revenues were up 36.9 percent as local and national advanced 27.8 percent and 54.5 percent, respectively. Based on current pacings, television revenues for the third quarter would be ahead of last year’s third-quarter results in the mid to high teens.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for July from Nielsen//NetRatings. In July, Gannett’s domestic Websites had 18.0 million unique visitors reaching over 12 percent of the Internet audience.
The pro forma revenues include the results of Captivate (acquired in April 2004), NurseWeek (acquired in February 2004), Clipper Magazine (acquired in October 2003), the SMG (Newsquest’s Scottish Media Group) publishing business and the Texas-New Mexico Newspapers Partnership as if they had been owned in both years. 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.
Prior to 2004, the company had included online revenues in the classified advertising revenue total but not in the specific classified categories of help wanted, automotive and real estate. Print and online ad revenues are now reported on a combined basis to calculate the percentage changes in these categories. Results for each period of 2003 have been reclassified to reflect this change.
Gannett Co., Inc. is a leading international news and information company that publishes 101 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns more than 600 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 8 (August 2, 2004 - August 29, 2004)
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 154,708,000 $ 145,884,000 $ 8,824,000 6.0
National 55,584,000 47,978,000 7,606,000 15.9
Classified 162,367,000 142,672,000 19,695,000 13.8
------------- ------------- ------------ ----
Total Advertising $ 372,659,000 $ 336,534,000 $ 36,125,000 10.7
Circulation 93,657,000 92,717,000 940,000 1.0
Other revenue 31,780,000 28,886,000 2,894,000 10.0
Broadcasting 76,960,000 55,991,000 20,969,000 37.5
------------- ------------- ------------ ----
Total Revenue $ 575,056,000 $ 514,128,000 $ 60,928,000 11.9
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 2,748,907 2,782,561 (33,654) (1.2)
National 276,103 285,109 (9,006) (3.2)
Classified 4,826,651 4,753,779 72,872 1.5
------------- ------------- ------------ ----
Total ROP 7,851,661 7,821,449 30,212 0.4
============= ============= ============ ====
Preprint Distribution
(in thousands) 865,093 833,975 31,118 3.7
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,946,480 6,942,077 4,403 0.1
Evening 1,169,047 1,196,522 (27,475) (2.3)
------------- ------------- ------------ ----
Total Daily 8,115,527 8,138,599 (23,072) (0.3)
============= ============= ============ ====
Sunday 6,803,543 6,954,400 (150,857) (2.2)
============= ============= ============ ====
Year-to-Date through August 29, 2004
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 1,313,241,000 $ 1,240,190,000 $ 73,051,000 5.9
National 503,876,000 455,099,000 48,777,000 10.7
Classified 1,373,063,000 1,218,839,000 154,224,000 12.7
-------------- -------------- ------------- ----
Total Advertising $ 3,190,180,000 $ 2,914,128,000 $ 276,052,000 9.5
Circulation 821,973,000 814,406,000 7,567,000 0.9
Other revenue 259,246,000 243,106,000 16,140,000 6.6
Television 527,258,000 470,528,000 56,730,000 12.1
-------------- -------------- ------------- ----
Total Revenue $ 4,798,657,000 $ 4,442,168,000 $ 356,489,000 8.0
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 24,401,179 24,358,232 42,947 0.2
National 2,745,005 2,606,295 138,710 5.3
Classified 40,595,665 39,403,621 1,192,044 3.0
-------------- -------------- ------------- ----
Total ROP 67,741,849 66,368,148 1,373,701 2.1
============== ============== ============= ====
Preprint Distribution
(in thousands) 7,263,883 7,058,249 205,634 2.9
============== ============== ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,091,134 7,057,037 34,097 0.5
Evening 1,121,332 1,150,364 (29,032) (2.5)
-------------- -------------- ------------- ----
Total Daily 8,212,466 8,207,401 5,065 0.1
============== ============== ============= ====
Sunday 6,884,146 7,028,615 (144,469) (2.1)
============== ============== ============= ====
Note: The operating results from the company’s newspapers participating in joint operating agencies, and which are accounted for under the equity method of accounting, are reported as a single amount in other operating revenues. Advertising linage statistics from these newspapers are not included above, however, circulation volume statistics for these newspapers are included above.
The above revenue amounts and statistics have been restated to include all companies presently owned including Captivate (acquired in April 2004), NurseWeek (acquired in February 2004), Clipper Magazine (acquired in late October 2003), SMG Publishing (acquired in April 2003) and 100% of the Texas-New Mexico Newspapers Partnership (established in March 2003). Captivate is a national news and entertainment network that delivers quality programming and full motion video advertising to more than 1.4 million consumers and business professionals each day through wireless digital video screens in the elevators of premier office towers across North America. Captivate is included above in Broadcasting revenue. NurseWeek is a multimedia company with print publications focused on the recruitment, recognition and education of nurses. Clipper Magazine is a direct-mail advertising magazine company publishing over 345 individual market editions in 24 states, which are mailed to over 100 million American homes annually. SMG Publishing consists of three Scottish newspapers: The Herald, Sunday Herald and Evening Times; eleven specialty consumer and business-to-business magazine titles; and an online advertising and content business.
Newsquest (which includes SMG Publishing) 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 seventeen 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 and advertising linage statistics for non-daily products, including NurseWeek and Clipper Magazine are not reflected above.
Certain online advertising revenues in 2003 have been reclassified to conform with the 2004 presentation. There was no effect on total revenues.
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Gannett Online Internet Audience June 2004Nielsen//NetRatings Nielsen//NetRatings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 18,030,000 12.2%