Gannett Releases January Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the first period ended January 30, 2005 increased 2.9 percent, benefiting from solid advertising demand at the domestic community newspapers which offset softer results in its broadcasting segment and its UK-based Newsquest properties. Newsquest’s results were negatively impacted, in part, by a shift in the calendar of the week after Christmas.
For comparison purposes, 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 2.3 percent.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in January were up 4.7 percent compared with the same period in 2004 on a less than
1 percent decline in ROP volume and a 5.5 percent advance in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have increased
3.9 percent.
Pro forma classified revenues increased 4.1 percent in the first period on a slight decline in ROP ad volume. On a constant currency basis, pro forma classified revenues would have increased 2.9 percent. Employment revenues rose 9.8 percent from the same period last year. Classified real estate revenues were unchanged while automotive revenues declined 3.1 percent. Overall, the company’s domestic classified results were much stronger than its UK results. On a constant currency basis, employment revenues would have increased 8.1 percent, real estate and automotive revenues would have declined 1.1 percent and 3.7 percent, respectively.
Pro forma local advertising revenues were up 4.6 percent on a 0.8 percent decline in ROP ad volume. The performance of the company’s largest advertisers in its domestic newspapers outpaced the revenue performance of its small and medium-sized advertisers in January. In the U.S., local ad revenue gains were achieved in the department store, consumer electronics, health, telecommunications and home improvement categories. However, the furniture, entertainment, grocery and restaurant categories declined compared to the same period a year ago. On a constant currency basis, pro forma local advertising would have advanced 4.2 percent.
Pro forma national advertising revenues increased 6.6 percent on an 8.0 percent decline in ad volume. National volume at the company’s local domestic newspapers declined 8.5 percent in the period compared with the same interval in 2004. USA WEEKEND, our weekly newspaper magazine, experienced higher national revenues in the period. While our revenue statistics include USA WEEKEND’s results, their ad volume is not included in the linage numbers. At USA TODAY, advertising revenues declined 1.2 percent on a 1.9 percent decline in paid ad pages to 366 from 373. For the first period, at USA TODAY, increases in the entertainment, travel, telecommunications and pharmaceutical categories were more than offset by declines in the automotive, technology and packaged goods categories. On a constant currency basis, pro forma national advertising would have increased 6.2 percent.
Pro forma broadcasting revenues declined 3.6 percent in the first period. Compared to the same period in 2004, local revenues and national revenues were 5.9 percent and 4.9 percent lower, respectively. Television revenues in the period reflected the absence of advertising related to the Super Bowl, which was on six of our CBS affiliates in 2004, and political advertising. Based on results to date and current pacings for the remainder of the quarter, television revenues are lagging last year’s first quarter results in the mid single digits.
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.
Contact:
Jeff Heinz
Director, Investor Relations
703-854-6917
jheinz@gannett.com
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
Period 1 (December 27, 2004 - January 30, 2005)
%
2005 2004 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 162,495,000 $ 155,345,000 $ 7,150,000 4.6
National 63,628,000 59,709,000 3,919,000 6.6
Classified 167,873,000 161,291,000 6,582,000 4.1
------------- ------------- ------------ ----
Total Advertising $ 393,996,000 $ 376,345,000 $ 17,651,000 4.7
Circulation 112,293,000 111,705,000 588,000 0.5
Other revenue 30,301,000 29,902,000 399,000 1.3
Broadcasting 55,656,000 57,757,000 (2,101,000) (3.6)
------------- ------------- ------------ ----
Total Revenue $ 592,246,000 $ 575,709,000 $ 16,537,000 2.9
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 3,040,478 3,064,504 (24,026) (0.8)
National 327,267 355,676 (28,409) (8.0)
Classified 5,124,080 5,134,329 (10,249) (0.2)
------------- ------------- ------------ ----
Total ROP 8,491,825 8,554,509 (62,684) (0.7)
============= ============= ============ ====
Preprint Distribution
(in thousands) 965,411 914,857 50,554 5.5
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,844,775 7,014,808 (170,033) (2.4)
Evening 1,185,780 1,231,871 (46,091) (3.7)
------------- ------------- ------------ ----
Total Daily 8,030,555 8,246,679 (216,124) (2.6)
============= ============= ============ ====
Sunday 6,741,265 6,974,490 (233,225) (3.3)
============= ============= ============ ====
Year-to-Date through January 30, 2005
%
2005 2004 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 162,495,000 $ 155,345,000 $ 7,150,000 4.6
National 63,628,000 59,709,000 3,919,000 6.6
Classified 167,873,000 161,291,000 6,582,000 4.1
------------- ------------- ------------ ----
Total Advertising $ 393,996,000 $ 376,345,000 $ 17,651,000 4.7
Circulation 112,293,000 111,705,000 588,000 0.5
Other revenue 30,301,000 29,902,000 399,000 1.3
Television 55,656,000 57,757,000 (2,101,000) (3.6)
------------- ------------- ------------ ----
Total Revenue $ 592,246,000 $ 575,709,000 $ 16,537,000 2.9
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 3,040,478 3,064,504 (24,026) (0.8)
National 327,267 355,676 (28,409) (8.0)
Classified 5,124,080 5,134,329 (10,249) (0.2)
------------- ------------- ------------ ----
Total ROP 8,491,825 8,554,509 (62,684) (0.7)
============= ============= ============ ====
Preprint Distribution
(in thousands) 965,411 914,857 50,554 5.5
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,844,775 7,014,808 (170,033) (2.4)
Evening 1,185,780 1,231,871 (46,091) (3.7)
------------- ------------- ------------ ----
Total Daily 8,030,555 8,246,679 (216,124) (2.6)
============= ============= ============ ====
Sunday 6,741,265 6,974,490 (233,225) (3.3)
============= ============= ============ ====
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.