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 31, 2003 increased 1 percent.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in August were up 3 percent compared with the same period in 2002 on a 2 percent increase in ROP volume and a 7 percent advance in preprint distribution.
Pro forma classified revenues advanced 3 percent in the August period on a 3 percent increase in ad volume. Employment revenues declined 6 percent from the same period last year. Classified real estate revenues advanced 9 percent, and automotive increased 2 percent. Overall, the company’s classified results from Newsquest were stronger than its domestic results.
Pro forma local advertising revenues rose 1 percent in the eighth period on a 2 percent decline in ad volume. 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., local ad revenue gains were achieved in the telecommunications, health and home improvement categories while there was softness in department stores, consumer electronics, furniture and entertainment ad spending.
Pro forma national advertising revenues increased 8 percent on an 11 percent increase in ad volume. National volume at the company’s local domestic newspapers rose 14 percent in the period compared with the same interval in 2002. At USA TODAY, advertising revenues were 2 percent lower on an 8 percent decrease in paid ad pages to 268 from 292. For the month, at USA TODAY, travel, pharmaceutical, retail and credit card advertising were strong but soft technology and financial advertising offset these gains. For the year-to-date, USA TODAY’s paid pages numbered 2,952 versus 3,085 last year while ad revenues were even with last year.
Television revenues declined 7 percent in the period reflecting substantially diminished political advertising. Local revenues rose 5 percent while national revenues declined 22 percent. For comparison purposes, television revenues increased 18 percent in August of 2002. At this point, pacings for September are trailing last year’s results in the mid-single digit range.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for July from Nielsen//Net Ratings. In July, Gannett’s domestic Websites had 14 million unique visitors reaching over 10 percent of the Internet audience.
The pro forma advertising and circulation revenue statistics include the results of the SMG (Newsquest’s Scottish Media Group) publishing business and Texas-New Mexico Newspapers Partnership as if they had been owned in both years. Ad linage for Newsquest is 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 100 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns almost 500 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 22 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:
Gracia Martore
Senior Vice President and Chief Financial Officer
703-854-6918
gmartore@gannett.com
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
Period 8 (August 4, 2003 - August 31, 2003)
%
2003 2002 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 133,402,000 $ 132,190,000 $ 1,212,000 1
National 47,573,000 43,879,000 3,694,000 8
Classified 142,938,000 139,045,000 3,893,000 3
------------- ------------- ------------ ----
Total Advertising $ 323,913,000 $ 315,114,000 $ 8,799,000 3
Circulation 92,748,000 93,020,000 (272,000) (0)
Other revenue 28,649,000 28,172,000 477,000 2
Television 55,370,000 59,661,000 (4,291,000) (7)
------------- ------------- ------------ ----
Total Revenue $ 500,680,000 $ 495,967,000 $ 4,713,000 1
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 2,766,967 2,826,030 (59,063) (2)
National 286,564 257,833 28,731 11
Classified 4,736,049 4,582,819 153,230 3
------------- ------------- ------------ ----
Total ROP 7,789,580 7,666,682 122,898 2
============= ============= ============ ====
Preprint Distribution
(in thousands) 841,961 788,138 53,823 7
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,923,998 7,027,943 (103,945) (1)
Evening 1,222,743 1,256,357 (33,614) (3)
------------- ------------- ------------ ----
Total Daily 8,146,741 8,284,300 (137,559) (2)
============= ============= ============ ====
Sunday 6,900,988 6,953,688 (52,700) (1)
============= ============= ============ ====
Year-to-Date through August 31, 2003
%
2003 2002 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 1,163,205,000 $ 1,130,020,000 $ 33,185,000 3
National 452,263,000 436,188,000 16,075,000 4
Classified 1,217,648,000 1,168,649,000 48,999,000 4
-------------- -------------- ------------- ----
Total Advertising $ 2,833,116,000 $ 2,734,857,000 $ 98,259,000 4
Circulation 815,265,000 811,057,000 4,208,000 1
Other revenue 241,099,000 226,037,000 15,062,000 7
Television 464,208,000 478,633,000 (14,425,000) (3)
-------------- -------------- ------------- ----
Total Revenue $ 4,353,688,000 $ 4,250,584,000 $ 103,104,000 2
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 24,310,915 24,665,480 (354,565) (1)
National 2,619,128 2,424,174 194,954 8
Classified 39,305,326 38,049,209 1,256,117 3
-------------- -------------- ------------- ----
Total ROP 66,235,369 65,138,863 1,096,506 2
============== ============== ============= ====
Preprint Distribution
(in thousands) 7,086,112 6,463,776 622,336 10
============== ============== ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,044,576 7,090,105 (45,529) (1)
Evening 1,259,302 1,297,105 (37,803) (3)
-------------- -------------- ------------- ----
Total Daily 8,303,878 8,387,210 (83,332) (1)
============== ============== ============= ====
Sunday 6,975,434 7,028,097 (52,663) (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 SMG Publishing (acquired in April 2003). 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 Newsquest’s unpaid daily and non-daily publications are not reflected above. Advertising linage for Newsquest publications is not reflected above.
--------------------------------------------------------------------------
Gannett Online Internet Audience July 2003Nielsen//NetRatings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 14,300,000 10.4%