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 29, 2004 increased 6.7 percent, benefiting from solid year-over-year gains in newspaper advertising and television revenues. For comparison purposes, the continued 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 4.6 percent.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in February were up 9.0 percent compared with the same period in 2003 on a
2.1 percent advance in ROP volume and a 1.8 percent increase in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have risen
6.4 percent.
Pro forma classified revenues increased 13.0 percent in the second period on a 4.2 percent increase in ROP ad volume. Employment revenues increased 18.6 percent from the same period last year. Classified real estate revenues advanced 12.0 percent and automotive rose 5.2 percent. On a constant currency basis, employment revenues would have increased 12.5 percent, real estate revenues 7.1 percent and automotive 2.7 percent. Overall, the company’s classified results from Newsquest were in line with its domestic results. On a constant currency basis, pro forma classified revenues would have increased 8.4 percent.
Pro forma local advertising revenues increased 5.1 percent on a 2.1 percent reduction 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 health, financial, furniture and telecommunications categories. However, there was continued softness in the department store, consumer electronics and grocery categories. On a constant currency basis, pro forma local advertising would have increased 3.6 percent.
Pro forma national advertising revenues rose 9.3 percent on a 11.8 percent increase in ad volume. National volume at the company’s local domestic newspapers advanced 14.0 percent in the period compared with the same interval in 2003. At USA TODAY, advertising revenues were up 4.9 percent on a 5.2 percent reduction in paid ad pages to 344 from 363. USA TODAY’s year-to-date paid pages totaled 717 compared
to 766 for the prior year while ad revenues were 3.5 percent higher. For the second period, at USA TODAY, results for the retail, entertainment, financial, packaged goods and telecommunications categories were strong while the travel, technology and automotive categories declined year-over-year.
Pro forma television revenues increased 3.8 percent in the period. Local revenues rose 8.3 percent and national revenues declined 1.9 percent. Based on results to date and current pacings for March, television revenues are ahead of 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//Net Ratings. In February, Gannett’s domestic Websites had over 19 million unique visitors reaching almost 13 percent of the Internet audience.
The pro forma advertising and circulation revenue statistics include the results of NurseWeek (acquired in February 2004), Clipper Magazine (acquired in October 2003), 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, 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.
Prior to 2004, the company had included online revenues in the classified advertising revenue total but not in the specific classified categories of help wanted, automotive and real estate. Print and online ad revenues are now reported on a combined basis to calculate the percentage changes in these categories. Results for each period of 2003 have been reclassified to reflect this change.
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 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 most of 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 2, 2004 - February 29, 2004)
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 150,717,000 $ 143,446,000 $ 7,271,000 5.1
National 59,053,000 54,004,000 5,049,000 9.3
Classified 155,775,000 137,804,000 17,971,000 13.0
------------- ------------- ------------ ----
Total Advertising $ 365,545,000 $ 335,254,000 $ 30,291,000 9.0
Circulation 97,240,000 95,502,000 1,738,000 1.8
Other revenue 29,558,000 29,030,000 528,000 1.8
Television 53,643,000 51,686,000 1,957,000 3.8
------------- ------------- ------------ ----
Total Revenue $ 545,986,000 $ 511,472,000 $ 34,514,000 6.7
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 2,701,225 2,759,640 (58,415) (2.1)
National 346,293 309,709 36,584 11.8
Classified 4,438,525 4,259,740 178,785 4.2
------------- ------------- ------------ ----
Total ROP 7,486,043 7,329,089 156,954 2.1
============= ============= ============ ====
Preprint Distribution
(in thousands) 829,494 814,852 14,642 1.8
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,243,457 7,232,148 11,309 0.2
Evening 1,233,354 1,262,566 (29,212) (2.3)
------------- ------------- ------------ ----
Total Daily 8,476,811 8,494,714 (17,903) (0.2)
============= ============= ============ ====
Sunday 7,025,631 7,144,682 (119,051) (1.7)
============= ============= ============ ====
Year-to-Date through February 29, 2004
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 306,675,000 $ 292,891,000 $ 13,784,000 4.7
National 118,833,000 112,230,000 6,603,000 5.9
Classified 314,833,000 284,297,000 30,536,000 10.7
-------------- -------------- ------------- ----
Total Advertising $ 740,341,000 $ 689,418,000 $ 50,923,000 7.4
Circulation 208,788,000 207,060,000 1,728,000 0.8
Other revenue 59,195,000 58,240,000 955,000 1.6
Television 110,606,000 105,234,000 5,372,000 5.1
-------------- -------------- ------------- ----
Total Revenue $ 1,118,930,000 $ 1,059,952,000 $ 58,978,000 5.6
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 5,741,236 5,792,358 (51,122) (0.9)
National 701,785 622,867 78,918 12.7
Classified 9,515,366 9,180,515 334,851 3.6
-------------- -------------- ------------- ----
Total ROP 15,958,387 15,595,740 362,647 2.3
============== ============== ============= ====
Preprint Distribution
(in thousands) 1,736,457 1,703,867 32,590 1.9
============== ============== ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,114,319 7,136,837 (22,518) (0.3)
Evening 1,230,598 1,261,281 (30,683) (2.4)
-------------- -------------- ------------- ----
Total Daily 8,344,917 8,398,118 (53,201) (0.6)
============== ============== ============= ====
Sunday 6,992,959 7,131,530 (138,571) (1.9)
============== ============== ============= ====
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 NurseWeek (acquired in February 2004), Clipper Magazine (acquired in late October 2003), SMG Publishing (acquired in April 2003) and 100% of the Texas-New Mexico Newspapers Partnership (established in March 2003). NurseWeek is a multimedia company with print publications focused on the recruitment, recognition and education of nurses. Clipper Magazine is a direct-mail advertising magazine company publishing over 320 individual market editions in 23 states, which are mailed to over 100 million American homes annually. 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.
Circulation volume and advertising linage statistics for non-daily products, including Clipper Magazine and NurseWeek, are not reflected above.
Certain online advertising revenues in 2003 have been reclassified to conform with the 2004 presentation. There was no effect on total revenues.
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Gannett Online Internet Audience February 2004Nielsen//NetRatings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 19,084,000 12.6%