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 February 27, 2005 increased 4.0 percent, benefiting from increases in local and classified advertising in its newspaper segment. Broadcast revenues trailed last year’s results due in part to significantly lower political ad spending. For comparison purposes, the 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 3.7 percent.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in February were up 5.9 percent compared with the same period in 2004 on a slight decline in ROP volume and a 6.0 percent advance in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have been 5.6 percent higher.
Pro forma classified revenues increased 6.1 percent in the second period on a 0.6 percent decrease in ROP ad volume. On a constant currency basis, pro forma classified revenues would have advanced 5.6 percent. Employment revenues were up 12.4 percent from the same period last year. Classified real estate revenues increased 3.3 percent and automotive declined 3.7 percent. On a constant currency basis, employment revenues and real estate revenues would have increased 11.8 percent and 2.8 percent, respectively. Overall, the company’s classified results from its domestic community newspapers were stronger than Newsquest’s results.
Pro forma local advertising revenues increased 7.3 percent on a 1.3 percent advance in ROP 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 department store, consumer electronics, grocery, health, financial, telecommunications and home improvement categories. However, the furniture, entertainment and restaurant categories were weaker than last year. On a constant currency basis, pro forma local advertising would have increased 7.1 percent.
Pro forma national advertising revenues were up 2.0 percent on a 12.2 percent decline in ad volume. National volume at the company’s local domestic newspapers declined 13.9 percent in the period compared with the same interval in 2004. At USA TODAY, advertising revenues were up 9.0 percent on a 5.2 percent increase in paid ad pages to 362 from 344. USA TODAY’s year-to-date paid pages totaled 728 compared to 717 for the prior year while ad revenues increased 3.7 percent. For the second period, at USA TODAY, results for the entertainment, travel, retail, technology, packaged goods, financial and pharmaceutical categories were strong while the automotive and telecommunications categories declined versus last year’s results.
Pro forma broadcasting revenues, including Captivate, declined 3.8 percent in the period. Local television revenues were down 0.8 percent and national revenues declined 12.7 percent. Based on results to date and current pacings for March, television revenues are lagging last year’s first quarter results in the mid-single digits.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for February from Nielsen//NetRatings. In February, Gannett’s domestic Websites had 18.7 million unique visitors reaching 12.7 percent of the Internet audience.
The pro forma advertising and circulation revenue statistics include the results of Captivate (acquired in April 2004) and NurseWeek (acquired in February 2004) 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.
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 750 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.
For investor inquiries, contact:
Jeff Heinz
Director, Investor Relations
(703) 854-6917
jheinz@gannett.com
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
Period 2 (January 31, 2005 - February 27, 2005)
%
2005 2004 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 160,122,000 $ 149,225,000 $ 10,897,000 7.3
National 60,012,000 58,829,000 1,183,000 2.0
Classified 168,229,000 158,618,000 9,611,000 6.1
------------- ------------- ------------ ----
Total Advertising $ 388,363,000 $ 366,672,000 $ 21,691,000 5.9
Circulation 97,743,000 97,337,000 406,000 0.4
Other revenue 31,668,000 29,822,000 1,846,000 6.2
Broadcasting 52,407,000 54,456,000 (2,049,000) (3.8)
------------- ------------- ------------ ----
Total Revenue $ 570,181,000 $ 548,287,000 $ 21,894,000 4.0
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 2,766,144 2,731,570 34,574 1.3
National 304,491 346,709 (42,218) (12.2)
Classified 4,474,076 4,499,641 (25,565) (0.6)
------------- ------------- ------------ ----
Total ROP 7,544,711 7,577,920 (33,209) (0.4)
============= ============= ============ ====
Preprint Distribution
(in thousands) 881,022 831,441 49,581 6.0
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,080,265 7,259,295 (179,030) (2.5)
Evening 1,185,658 1,231,873 (46,215) (3.8)
------------- ------------- ------------ ----
Total Daily 8,265,923 8,491,168 (225,245) (2.7)
============= ============= ============ ====
Sunday 6,813,986 7,022,751 (208,765) (3.0)
============= ============= ============ ====
Year-to-Date through February 27, 2005
%
2005 2004 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 322,527,000 $ 304,426,000 $ 18,101,000 5.9
National 123,683,000 118,534,000 5,149,000 4.3
Classified 336,148,000 320,057,000 16,091,000 5.0
------------- ------------- ------------ ----
Total Advertising $ 782,358,000 $ 743,017,000 $ 39,341,000 5.3
Circulation 210,036,000 209,042,000 994,000 0.5
Other revenue 61,971,000 59,724,000 2,247,000 3.8
Television 108,062,000 112,212,000 (4,150,000) (3.7)
------------- ------------- ------------ ----
Total Revenue $1,162,427,000 $1,123,995,000 $ 38,432,000 3.4
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 5,807,722 5,796,074 11,648 0.2
National 631,758 702,385 (70,627) (10.1)
Classified 9,598,156 9,633,970 (35,814) (0.4)
------------- ------------- ------------ ----
Total ROP 16,037,636 16,132,429 (94,793) (0.6)
============= ============= ============ ====
Preprint Distribution
(in thousands) 1,847,113 1,746,298 100,815 5.8
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,956,695 7,130,215 (173,520) (2.4)
Evening 1,173,114 1,218,146 (45,032) (3.7)
------------- ------------- ------------ ----
Total Daily 8,129,809 8,348,361 (218,552) (2.6)
============= ============= ============ ====
Sunday 6,777,707 6,998,641 (220,934) (3.2)
============= ============= ============ ====
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) and NurseWeek (acquired in February 2004). Captivate is a national news and entertainment network that delivers programming and full motion video advertising through wireless digital video screens in elevators of premier office towers. Captivate is included above in Broadcasting revenue. NurseWeek is a multimedia company with print publications focused on the recruitment, recognition and education of nurses.
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.
--------------------------------------------------------------------------Gannett Online Internet Audience
February 2005
Nielsen//NetRatings Home/Work Panel Combined
Unique Visitors Percentage Reach of
Per Month Internet AudienceGannett Online 18,700,000 12.7%