Gannett Releases February Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the second period ended March 2, 2008 declined 7.2 percent compared with the same period in 2007. The exchange rate of the British pound was virtually flat with last year and therefore had no meaningful impact on results.
Pro forma newspaper advertising revenues in the second period were down 8.3 percent compared with a year ago. Pro forma assumes all properties presently owned were owned in both periods.
Pro forma retail advertising revenues were 7.7 percent lower in February as most major categories lagged last year’s results.
Pro forma classified revenues declined 13.6 percent in the second period. Real estate revenues were down 20.7 percent, employment revenues were 16.1 percent lower, and automotive revenues declined 13.3 percent. U.S. Community Publishing pro forma classified revenues were 18.0 percent lower in February reflecting declines of 26.6 percent in real estate revenues, 23.3 percent in employment revenues and 10.9 percent in automotive revenues. Classified results at our operations in the UK were better than in U.S. Community Publishing. Classified revenues at Newsquest in the UK declined
5.3 percent, in pounds. Real estate revenues were down 10.3 percent, employment revenues were
1.0 percent lower and automotive revenues declined 20.3 percent while other revenues were 3.5 percent higher.
Pro forma national advertising revenues in February were up 6.0 percent. At USA TODAY, advertising revenues were 14.5 percent higher on paid ad pages of 296 versus 291 last year. In the second period of 2008 at USA TODAY, there was strong growth in the travel, technology, financial, packaged goods, retail, advocacy and pharmaceutical categories while the telecommunications and automotive categories lagged results for the same period in 2007. National revenues in U.S. Community Publishing were also 11.7 percent ahead of last year.
Pro forma broadcasting revenues, which include Captivate, were 7.1 percent
lower in the period. Television revenues declined 7.6 percent in February as
local and national revenues were 8.5 percent and 10.1 percent lower, respectively.
Based on results to date and current pacings, television revenues for the first
quarter of 2008 would lag last year’s first quarter in the mid single digits.
Based on figures from Nielsen//Net ratings, in February, Gannett’s domestic Web sites had 25.8 million unique visitors reaching 15.9 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. In addition, the Chronicle-Tribune in Marion, IN, was contributed to the Gannett Foundation on May 21, 2007. The revenue and statistical data related to these properties has been excluded from all periods presented.
To conform with current year presentation, the company’s equity share of operating results for 2007 from its newspaper partnerships, including Tucson, which participates in a joint operating agency, the California Newspapers Partnership and the Texas-New Mexico Newspapers Partnership have been reclassified from “Other revenue” and are reflected in a separate line in the Non-Operating section of the Statement of Income titled “Equity income in unconsolidated investees, net.” Other revenue is now comprised principally of commercial printing revenues and revenue from PointRoll.
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 85 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns nearly 900 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 2 (February 4, 2008 - March 2, 2008)
%
2008 2007 CHANGE CHANGE
REVENUES:
Advertising:
Retail $ 149,356,000 $ 161,855,000 $ (12,499,000) (7.7)
National 56,784,000 53,545,000 3,239,000 6.0
Classified 140,807,000 163,036,000 (22,229,000) (13.6)
-------------- -------------- ------------- -----
Total Advertising $ 346,947,000 $ 378,436,000 $ (31,489,000) (8.3)
============== ============== ============= =====
Circulation 96,187,000 98,734,000 (2,547,000) (2.6)
Other revenue 30,771,000 33,542,000 (2,771,000) (8.3)
Broadcasting 54,571,000 58,752,000 (4,181,000) (7.1)
-------------- -------------- ------------- -----
Total Revenue $ 528,476,000 $ 569,464,000 $ (40,988,000) (7.2)
============== ============== ============= =====
NET PAID CIRCULATION:
Morning (w/USAT) 6,699,416 6,944,610 (245,194) (3.5)
Evening 802,877 843,106 (40,229) (4.8)
-------------- -------------- ------------- -----
Total Daily 7,502,293 7,787,716 (285,423) (3.7)
============== ============== ============= =====
Sunday 5,707,795 6,065,873 (358,078) (5.9)
============== ============== ============= =====
Year-to-Date through March 2, 2008
%
2008 2007 CHANGE CHANGE
REVENUES:
Advertising
Retail $ 309,465,000 $ 334,266,000 $ (24,801,000) (7.4)
National 119,144,000 112,590,000 6,554,000 5.8
Classified 289,737,000 340,610,000 (50,873,000) (14.9)
-------------- -------------- ------------- -----
Total Advertising $ 718,346,000 $ 787,466,000 $ (69,120,000) (8.8)
============== ============== ============= =====
Circulation 208,327,000 213,632,000 (5,305,000) (2.5)
Other revenue 64,767,000 70,754,000 (5,987,000) (8.5)
Broadcasting 111,789,000 119,623,000 (7,834,000) (6.5)
-------------- -------------- ------------- -----
Total Revenue $ 1,103,229,000 $ 1,191,475,000 $ (88,246,000) (7.4)
============== ============== ============= =====
NET PAID CIRCULATION:
Morning (w/USAT) 6,602,738 6,854,157 (251,419) (3.7)
Evening 805,054 844,507 (39,453) (4.7)
-------------- -------------- ------------- -----
Total Daily 7,407,792 7,698,664 (290,872) (3.8)
============== ============== ============= =====
Sunday 5,709,525 6,057,305 (347,780) (5.7)
============== ============== ============= =====
Note: To conform with current year presentation, the company’s equity share
of operating results for 2007 from its newspaper partnerships,
including Tucson, which participates in a joint operating agency, the
California Newspapers Partnership and the Texas-New Mexico Newspapers
Partnership have been reclassified from “Other revenue” above and are
reflected in a separate line in the Non-Operating section of the
Statement of Income titled “Equity income in unconsolidated
investees, net.” Other revenue is now comprised principally of
commercial printing revenues and revenue from PointRoll.
The above revenue amounts and statistics have been restated to
include all companies presently owned. In May 2007, Gannett sold
the Norwich (CT) Bulletin, the Rockford (IL) Register Star, the
Observer-Dispatch in Utica, NY and The Herald-Dispatch in Huntington,
WV. In May 2007, Gannett contributed the Chronicle-Tribune in
Marion, IN to the Gannett Foundation. All revenue amounts and
statistics related to the sold and donated properties are excluded
from all periods presented.
Circulation volume statistics from the company’s newspaper in Tucson,
which participates in a joint operating agency, are included above.
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.
Circulation volume statistics for non-daily products, including
Gannett Healthcare Group and Clipper Magazine are not reflected
above.
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Gannett Online Internet Audience February 2008 Nielsen//Net Ratings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 25,817,000 15.9%