Gannett Releases February Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the second period declined 4.5 percent, compared with the second 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 6.0 percent lower.
Pro forma newspaper advertising revenues in February were down 3.8 percent, compared with February in 2006 due, in part, to severe winter weather in the Midwest and Northeast. 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 5.7 percent lower.
Pro forma local advertising revenues were 0.5 percent lower in the second period. In the U.S., across all products, all major categories, excluding health, telecommunications and office supplies, lagged last year. On a constant currency basis, pro forma local advertising would have been down 1.6 percent.
Pro forma classified revenues declined 6.3 percent in the period. On a constant currency basis, pro forma classified revenues would have been 9.2 percent lower. Real estate revenues were down 7.2 percent; employment revenues were 7.5 percent lower while automotive revenues declined 12.1 percent. If the exchange rate had remained constant year-over-year, real estate would have been 10.2 percent lower, employment would have declined 10.3 percent and automotive would have been down 14.4 percent. At our U.S. community newspapers, pro forma classified revenues were 10.6 percent lower for the second period reflecting declines of 15.5 percent in real estate revenues, 11.3 percent in employment revenues and 13.1 percent in automotive revenues. Classified revenues at Newsquest in the UK were down 4.8 percent, in pounds, as real estate increased 0.6 percent while employment and automotive were 8.0 percent and 18.2 percent lower, respectively.
Pro forma national advertising revenues for February were down 5.7 percent. At our local domestic newspapers, national volume was 13.8 percent lower in the period. At USA TODAY, advertising revenues declined 13.9 percent on a decline in paid ad pages to 291 from 344. For the second period, at USA TODAY, there was growth in the travel, financial, retail, packaged goods, home and building and restaurants categories while the entertainment, automotive and technology categories lagged results for the same period in 2006.
Pro forma broadcasting revenues, which include Captivate, were 20.1 percent lower for the second period reflecting the absence of over $22 million in Olympic revenue that benefited February’s results in 2006. Television revenues were down 21.4 percent in the period. Local revenues were 18.0 percent lower, while national revenues fell 30.1 percent. Based on current pacings, television revenues for the first quarter of 2007 would lag last year’s first quarter in the high single digits.
Other revenue increased 9.2 percent in the second period due primarily to a significant increase in commercial printing.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for February from Nielsen//Net Ratings. In
February, Gannett’s domestic Websites had approximately 21.1 million unique visitors reaching 13.4 percent of the Internet audience.
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 Healthcare 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 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 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 2 (February 5, 2007 - March 4, 2007)
%
2007 2006 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 162,492,000 $ 163,327,000 $ (835,000) (0.5)
National 60,480,000 64,134,000 (3,654,000) (5.7)
Classified 162,073,000 172,947,000 (10,874,000) (6.3)
------------- ------------ ----------- ----
Total Advertising $ 385,045,000 $ 400,408,000 $ (15,363,000) (3.8)
============= ============ =========== ====
Circulation 100,720,000 100,895,000 (175,000) (0.2)
Other revenue 37,235,000 34,108,000 3,127,000 9.2
Broadcasting 58,752,000 73,548,000 (14,796,000) (20.1)
------------- ------------ ----------- ----
Total Revenue $ 581,752,000 $ 608,959,000 $ (27,207,000) (4.5)
============= ============ =========== ====
VOLUME:
Newspaper Inches:
Local 2,454,002 2,527,581 (73,579) (2.9)
National 259,003 302,224 (43,221) (14.3)
Classified 3,864,459 4,147,194 (282,735) (6.8)
------------- ------------ ----------- ----
Total ROP 6,577,464 6,976,999 (399,535) (5.7)
============= ============ =========== ====
Preprint Distribution
(in thousands) 910,779 911,219 (440) (0.0)
============= ============ =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,078,129 7,137,664 (59,535) (0.8)
Evening 876,779 909,643 (32,864) (3.6)
------------- ------------ ----------- ----
Total Daily 7,954,908 8,047,307 (92,399) (1.1)
============= ============ =========== ====
Sunday 6,261,313 6,412,029 (150,716) (2.4)
============= ============ =========== ====
Year-to-Date through March 4, 2007
%
2007 2006 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 335,577,000 $ 336,035,000 $ (458,000) (0.1)
National 127,063,000 134,105,000 (7,042,000) (5.3)
Classified 339,151,000 345,640,000 (6,489,000) (1.9)
------------- ------------- ----------- ----
Total Advertising $ 801,791,000 $ 815,780,000 $ (13,989,000) (1.7)
============= ============= =========== ====
Circulation 218,098,000 216,762,000 1,336,000 0.6
Other revenue 79,085,000 69,147,000 9,938,000 14.4
Broadcasting 119,623,000 133,309,000 (13,686,000) (10.3)
------------- ------------- ----------- ----
Total Revenue $ 1,218,597,000 $ 1,234,998,000 $ (16,401,000) (1.3)
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 5,252,399 5,391,788 (139,389) (2.6)
National 563,369 649,479 (86,110) (13.3)
Classified 8,360,984 8,930,096 (569,112) (6.4)
------------- ------------- ----------- ----
Total ROP 14,176,752 14,971,363 (794,611) (5.3)
============= ============= =========== ====
Preprint Distribution
(in thousands) 1,846,579 1,952,768 (106,189) (5.4)
============= ============= =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,987,291 7,034,206 (46,915) (0.7)
Evening 877,999 907,949 (29,950) (3.3)
------------- ------------- ----------- ----
Total Daily 7,865,290 7,942,155 (76,865) (1.0)
============= ============= =========== ====
Sunday 6,250,729 6,390,823 (140,094) (2.2)
============= ============= =========== ====
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 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.
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Gannett Online Internet Audience January 2007Nielsen//Net Ratings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 21,051,000 13.4%