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, 2003 increased 1 percent. Results in the period reflect solid year-over-year gains in newspaper advertising but also the absence of Winter Olympic-related advertising that benefited the company’s thirteen NBC affiliates and USA TODAY last February.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in February were up 4 percent compared with the same period in 2002 on a 2 percent increase in ROP volume and a 10 percent advance in preprint distribution.
Pro forma classified revenues increased 5 percent in the February period on a 4 percent increase in ad volume. Employment revenues declined 1 percent from the same period last year. Classified real estate revenues advanced 9 percent, and automotive increased 7 percent.
Pro forma local advertising revenues increased 3 percent on a 2 percent decline in 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.
Pro forma national advertising revenues rose 1 percent on a 12 percent increase in ad volume. National volume at the company’s local domestic newspapers advanced 17 percent in the period compared with the same interval in 2002. USA WEEKEND, our weekly newspaper magazine, experienced lower revenues during the period. While our revenue statistics include USA WEEKEND, its ad volume is not included in the linage numbers. At USA TODAY, advertising revenues declined 3 percent on a 9 percent decrease in paid ad pages to 363 from 400. For the year-to-date, USA TODAY’s paid pages numbered 766 versus 781 last year while ad revenues were 6 percent higher.
Television revenues declined 17 percent in the period. Local revenues fell 18 percent and national revenues declined 17 percent. March television pacings, which were up in the high teens, have softened over the last few weeks. Television pacings are now up in the low single digit range reflecting greater geopolitical uncertainty.
Pro forma other revenues, which primarily includes Gannett’s share of the operating results of the Detroit and Tucson joint operating agencies and the company’s commercial printing activities, rose 10 percent.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience shares for February Nielsen//NetRatings. In February, Gannett’s domestic web sites had 12 million unique visitors reaching 10 percent of the Internet audience.
Ad linage for Newsquest is 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 94 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns in excess of 400 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 15 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:
Gracia Martore
Senior Vice President and Chief Financial Officer
(703) 854-6918
gmartore@gannett.com
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
Period 2 (February 3, 2003 - March 2, 2003)
%
2003 2002 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 132,349,000 $ 128,433,000 $ 3,916,000 3
National 52,228,000 51,493,000 735,000 1
Classified 134,244,000 127,635,000 6,609,000 5
------------- ------------- ------------ ----
Total Advertising $ 318,821,000 $ 307,561,000 $ 11,260,000 4
Circulation 93,056,000 92,868,000 188,000 0
Other revenue 27,832,000 25,257,000 2,575,000 10
Television 51,686,000 62,126,000 (10,440,000) (17)
------------- ------------- ------------ ----
Total Revenue $ 491,395,000 $ 487,812,000 $ 3,583,000 1
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 2,710,549 2,755,184 (44,635) (2)
National 308,066 275,705 32,361 12
Classified 4,241,950 4,084,341 157,609 4
------------- ------------- ------------ ----
Total ROP 7,260,565 7,115,230 145,335 2
============= ============= ============ ====
Preprint Distribution
(in thousands) 810,646 738,183 72,463 10
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,079,863 7,102,148 (22,285) (0)
Evening 1,190,633 1,224,997 (34,364) (3)
------------- ------------- ------------ ----
Total Daily 8,270,496 8,327,145 (56,649) (1)
============= ============= ============ ====
Sunday 7,045,428 7,077,913 (32,485) (0)
============= ============= ============ ====
Year-to-Date through March 2, 2003
%
2003 2002 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 271,336,000 $ 262,130,000 $ 9,206,000 4
National 109,554,000 104,286,000 5,268,000 5
Classified 277,865,000 264,453,000 13,412,000 5
-------------- -------------- ------------- ----
Total Advertising $ 658,755,000 $ 630,869,000 $ 27,886,000 4
Circulation 202,225,000 201,507,000 718,000 0
Other revenue 55,766,000 50,653,000 5,113,000 10
Television 105,234,000 111,647,000 (6,413,000) (6)
-------------- -------------- ------------- ----
Total Revenue $ 1,021,980,000 $ 994,676,000 $ 27,304,000 3
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 5,697,375 5,756,612 (59,237) (1)
National 619,544 555,410 64,134 12
Classified 9,153,553 8,727,241 426,312 5
-------------- -------------- ------------- ----
Total ROP 15,470,472 15,039,263 431,209 3
============== ============== ============= ====
Preprint Distribution
(in thousands) 1,701,615 1,521,480 180,135 12
============== ============== ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,983,765 7,011,711 (27,946) (0)
Evening 1,187,988 1,216,002 (28,014) (2)
-------------- -------------- ------------- ----
Total Daily 8,171,753 8,227,713 (55,960) (1)
============== ============== ============= ====
Sunday 7,031,498 7,047,164 (15,666) (0)
============== ============== ============= ====
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.
Certain immaterial charges relating to sales promotions have been reclassified in the prior year from newspaper expenses to a reduction of circulation revenue; the reclassification had no effect on operating income or net income.
Newsquest (which includes Newscom) 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 fifteen 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.
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Gannett Online Internet Audience February 2003Nielsen//NetRatings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 12,443,000 10%