Gannett Releases December Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the twelfth period increased 19.2 percent, compared with the twelfth period in 2005. The twelfth period in 2006, which ended on December 31, spanned five weeks this year instead of the usual four so comparisons are not fully representative of current trends. Without the extra week, total pro forma operating revenues would have been 1.6 percent higher. Pro forma assumes all properties presently owned were owned in both periods.
Pro forma newspaper advertising revenues in the five-week December period were up
17.5 percent, compared with the twelfth period in 2005. This was based on increases of 19.2 percent in ROP volume and 13.6 percent in preprint distribution. Excluding the extra week in the twelfth period, pro forma newspaper advertising revenues would have been up 1.2 percent.
Pro forma local advertising revenues increased 17.3 percent on 17.8 percent higher ROP ad volume in the five-week December period. In the U.S., across all products, all categories except financial and home improvement were ahead of last year. Excluding the fifth week in the period, pro forma local advertising revenue would have increased 1.3 percent.
Pro forma classified revenues were 14.2 percent higher in the five-week twelfth period on a 20.4 percent increase in ROP ad volume. Real estate revenues were up 11.1 percent; employment revenues were 9.8 percent higher; and automotive revenues rose 12.9 percent. At our U.S. community newspapers, pro forma classified revenues were 12.7 percent higher for the five-week period. That increase includes growth of 6.7 percent in real estate revenues, 7.2 percent in employment revenues and 14.6 percent in automotive revenues. Pro forma classified revenues would have been flat on a four-week to four-week comparison.
Pro forma national advertising revenues for the five-week December period were 23.8 percent higher on an 18.9 percent increase in ad volume. At our local domestic newspapers, national volume was up 17.1 percent in the period. At USA TODAY, advertising revenues were 24.4 percent higher on an increase in paid ad pages to 538 from 429. During the first four weeks of the period, paid ad pages were 10.9 percent higher. In the twelfth period, USA TODAY posted strong growth in all categories except the technology and advocacy categories.
Pro forma broadcasting revenues, which include Captivate, were up 16.1 percent for the five-week December period. Television revenues increased 14.2 percent for the twelfth period. National
revenues were 18.5 percent higher, while local revenues increased 11.8 percent. Excluding the fifth week, television revenues decreased 4.4 percent.
For the fourth quarter of 2006, total pro forma operating revenues were 7.8 percent higher. The fourth quarter was comprised of 14 weeks in 2006 versus 13 weeks in 2005. Excluding the extra week, pro forma operating revenues would have increased 2.4 percent.
Pro forma newspaper advertising revenues for the quarter were up 5.3 percent. Excluding the extra week, pro forma advertising revenues were up slightly. The company’s domestic advertising revenues were 4.9 percent higher but would have been down 0.6 percent on a 13-week to 13-week comparison basis.
For the quarter, pro forma local advertising increased 6.6 percent. Excluding the extra week, pro forma local advertising revenues would have been up 1.3 percent. Local advertising in the U.S. was 6.2 percent higher for the quarter and would have been up almost 1 percent excluding the extra week.
Pro forma classified revenues for the quarter increased 1.7 percent. Real estate revenues were 4.7 percent higher, while employment was down 1.8 percent and automotive was 4.2 percent lower. Classified revenues would have been down 2.2 percent excluding the extra week. For the 14-week quarter, classified revenues were up slightly at our domestic community newspapers. That increase was comprised of a 1.6 percent increase in real estate offset by a 4.4 percent decline in employment and a 3.4 percent decline in automotive revenues.
Pro forma national advertising revenues were 9.1 percent higher for quarter. At USA TODAY, advertising revenues increased 13.0 percent in the quarter. Paid advertising pages totaled 1,348 compared with 1,226 in the year-ago period. Excluding the extra week in the quarter, national advertising would have been 2.2 percent higher.
Pro forma broadcasting revenues were 22.0 percent higher and television revenues were up 20.7 percent. In a 13-week to 13-week comparison, broadcasting revenues increased 16.6 percent, reflecting higher politically related ad demand. Captivate also helped. Based on current pacings, television revenues for the first quarter of 2007 would lag last year’s first quarter in the mid-to-high single digits, reflecting primarily the absence of over $22 million of Olympic revenue that benefited last year’s first quarter.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for December from Nielsen//Net Ratings. In
December, Gannett’s domestic Websites had approximately 22.1 million unique visitors reaching
13.7 percent of the Internet audience.
Included in the pro forma advertising and circulation revenue statistics are results for: Exchange & Mart and Auto Exchange (acquired in September 2005); Tallahassee (acquired in August 2005); 100 percent of the Detroit Newspaper Partnership (established in August 2005); Mint Magazine (acquired in July 2005); and Hometown Communications (acquired in March 2005). The pro forma other revenue statistics include the results for PointRoll, Inc. (acquired in June 2005). 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 Nursing Spectrum 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 former Gannett-owned newspapers in Bellingham (WA), Olympia (WA) and Boise (ID) as well as 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 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 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 12 (November 26, 2006 - December 31, 2006)
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 243,322,000 $ 207,388,000 $ 35,934,000 17.3
National 98,615,000 79,625,000 18,990,000 23.8
Classified 162,605,000 142,391,000 20,214,000 14.2
------------- ------------ ----------- ----
Total Advertising $ 504,542,000 $ 429,404,000 $ 75,138,000 17.5
============= ============ =========== ====
Circulation 125,393,000 103,417,000 21,976,000 21.2
Other revenue 52,860,000 38,208,000 14,652,000 38.3
Broadcasting 74,521,000 64,161,000 10,360,000 16.1
------------- ------------ ----------- ----
Total Revenue $ 757,316,000 $ 635,190,000 $ 122,126,000 19.2
============= ============ =========== ====
VOLUME:
Newspaper Inches:
Local 3,643,550 3,092,316 551,234 17.8
National 415,567 349,507 66,060 18.9
Classified 4,502,000 3,739,709 762,291 20.4
------------- ------------ ----------- ----
Total ROP 8,561,117 7,181,532 1,379,585 19.2
============= ============ =========== ====
Preprint Distribution
(in thousands) 1,516,113 1,334,081 182,032 13.6
============= ============ =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,734,296 6,871,901 (137,605) (2.0)
Evening 868,391 895,330 (26,939) (3.0)
------------- ------------ ----------- ----
Total Daily 7,602,687 7,767,231 (164,544) (2.1)
============= ============ =========== ====
Sunday 6,164,029 6,256,802 (92,773) (1.5)
============= ============ =========== ====
Year-to-Date through December 31, 2006
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 2,315,039,000 $ 2,261,020,000 $ 54,019,000 2.4
National 874,039,000 864,683,000 9,356,000 1.1
Classified 2,179,694,000 2,205,617,000 (25,923,000) (1.2)
------------- ------------- ----------- ----
Total Advertising $ 5,368,772,000 $ 5,331,320,000 $ 37,452,000 0.7
============= ============= =========== ====
Circulation 1,306,041,000 1,308,796,000 (2,755,000) (0.2)
Other revenue 501,426,000 460,930,000 40,496,000 8.8
Broadcasting 884,568,000 790,759,000 93,809,000 11.9
------------- ------------- ----------- ----
Total Revenue $ 8,060,807,000 $ 7,891,805,000 $ 169,002,000 2.1
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 35,152,546 34,773,974 378,572 1.1
National 3,945,539 4,189,571 (244,032) (5.8)
Classified 55,556,478 55,638,037 (81,559) (0.1)
------------- ------------- ----------- ----
Total ROP 94,654,563 94,601,582 52,981 0.1
============= ============= =========== ====
Preprint Distribution
(in thousands) 12,612,518 12,679,266 (66,748) (0.5)
============= ============= =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,973,791 7,095,351 (121,560) (1.7)
Evening 884,926 919,834 (34,908) (3.8)
------------- ------------- ----------- ----
Total Daily 7,858,717 8,015,185 (156,468) (2.0)
============= ============= =========== ====
Sunday 6,267,176 6,412,813 (145,637) (2.3)
============= ============= =========== ====
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 Exchange & Mart and Auto Exchange (non-daily publications acquired in September 2005), the Tallahassee Democrat (acquired in late August 2005), 100% of the Detroit Newspaper Partnership (established August 2005), Mint Magazine (acquired in July 2005), PointRoll, Inc. (acquired in June 2005) and Hometown Communications (acquired in late March 2005). PointRoll is a marketing services company with a suite of media products that delivers enhanced online marketing opportunities for advertisers, agencies and online publishers. PointRoll is included above in Other revenue. Hometown is a community publishing company with one daily newspaper, 62 non-daily community newspapers, 24 community telephone directories and other specialty and niche publications. The revenue and statistical data related to the former Gannett owned newspapers in Bellingham (WA), Olympia (WA) and Boise (ID) as well as the Muskogee (OK) Phoenix which was contributed to the Gannett Foundation in April 2006, has been excluded from all periods presented. Gannett’s fiscal year included 53 weeks compared with 52 weeks in 2005. All of the 2006 results in the above chart were impacted by the extra week.
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 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 statistics for Detroit Free Press, a morning newspaper, are reflected above. Circulation volume statistics for The Detroit News, an evening newspaper, are not reflected above. Circulation volume and advertising linage statistics for non-daily products, including Gannett Healthcare Group (formerly Nursing Spectrum) and Clipper Magazine are not reflected above.
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
4th Quarter 2006 (September 25, 2006 - December 31, 2006)
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 668,847,000 $ 627,322,000 $ 41,525,000 6.6
National 261,635,000 239,774,000 21,861,000 9.1
Classified 515,765,000 506,996,000 8,769,000 1.7
------------- ------------- ----------- ----
Total Advertising $ 1,446,247,000 $ 1,374,092,000 $ 72,155,000 5.3
============= ============= =========== ====
Circulation 344,451,000 324,436,000 20,015,000 6.2
Other revenue 146,903,000 127,314,000 19,589,000 15.4
Broadcasting 270,645,000 221,814,000 48,831,000 22.0
------------- ------------- ----------- ----
Total Revenue $ 2,208,246,000 $ 2,047,656,000 $ 160,590,000 7.8
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 10,090,353 9,565,570 524,783 5.5
National 1,097,836 1,115,756 (17,920) (1.6)
Classified 13,753,834 13,245,842 507,992 3.8
------------- ------------- ---------- ----
Total ROP 24,942,023 23,927,168 1,014,855 4.2
============= ============= ========== ====
Preprint Distribution
(in thousands) 3,867,978 3,737,733 130,245 3.5
============= ============= ========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,965,699 7,072,977 (107,278) (1.5)
Evening 880,857 907,543 (26,687) (2.9)
------------- ------------- ---------- ----
Total Daily 7,846,556 7,980,521 (133,965) (1.7)
============= ============= ========== ====
Sunday 6,240,419 6,374,592 (134,173) (2.1)
============= ============= ========== ====
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 Exchange & Mart and Auto Exchange (non-daily publications acquired in September 2005), the Tallahassee Democrat (acquired in late August 2005), 100% of the Detroit Newspaper Partnership (established August 2005), Mint Magazine (acquired in July 2005), PointRoll, Inc. (acquired in June 2005) and Hometown Communications (acquired in late March 2005). PointRoll is a marketing services company with a suite of media products that delivers enhanced online marketing opportunities for advertisers, agencies and online publishers. PointRoll is included above in Other revenue. Hometown is a community publishing company with one daily newspaper, 62 non-daily community newspapers, 24 community telephone directories and other specialty and niche publications. The revenue and statistical data related to the former Gannett owned newspapers in Bellingham (WA), Olympia (WA) and Boise (ID) as well as the Muskogee (OK) Phoenix which was contributed to the Gannett Foundation in April 2006, has been excluded from all periods presented. Gannett’s fiscal year included 53 weeks compared with 52 weeks in 2005. All of the 2006 results in the above chart were impacted by the extra week.
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 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 statistics for Detroit Free Press, a morning newspaper, are reflected above. Circulation volume statistics for The Detroit News, an evening newspaper, are not reflected above. Circulation volume and advertising linage statistics for non-daily products, including Gannett Healthcare Group (formerly Nursing Spectrum) and Clipper Magazine are not reflected above.
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Gannett Online Internet Audience December 2006Nielsen//Net Ratings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 22,079,000 13.7%