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 February 1, 2004 increased 4.6 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 2.9 percent.
Please note that previously 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. Beginning with this report, print and online ad revenues are 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.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in January were up 6.1 percent compared with the same period in 2003 on a 2.4 percent increase in ROP volume and a 2.6 percent advance in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have risen 4.0 percent.
Pro forma classified revenues increased 8.5 percent in the first period on a 3.1 percent increase in ROP ad volume. Employment revenues increased 9.7 percent from the same period last year. Classified real estate revenues advanced 7.7 percent, and automotive rose 3.1 percent. On a constant currency basis, employment revenues would have increased 5.1 percent, real estate revenues 4.3 percent, and automotive 1.3 percent. Overall, the company’s classified results from Newsquest were stronger than its domestic results. On a constant currency basis, pro forma classified revenues would have increased 5.0 percent.
Pro forma local advertising revenues increased 5.1 percent on almost flat 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 financial, telecommunications, furniture and home improvement 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 3.8 percent.
Pro forma national advertising revenues rose 2.7 percent on a 13.5 percent increase in ad volume. National volume at the company’s local domestic newspapers advanced 17.2 percent in the period compared with the same interval in 2003. USA WEEKEND, our weekly newspaper magazine, experienced substantially lower national ad revenues during the period. While our revenue statistics include their results,
USA WEEKEND’s ad volume is not included in the linage numbers. At USA TODAY, advertising revenues were up 2.2 percent on a 7.4 percent reduction in paid ad pages to 373 from 403. For the first period, at USA TODAY, results for the retail, entertainment and packaged good categories were strong while the travel, technology and automotive categories declined year-over-year.
Pro forma television revenues increased 6.4 percent in the period. Local revenues rose 9.0 percent and national revenues grew 4.6 percent. Based on results to date and current pacings for the remainder of the quarter, television revenues are ahead of last year’s first quarter results in the low single digits.
The pro forma advertising and circulation revenue statistics include the results of 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 and Clipper 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 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
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
Period 1 (December 29, 2003 - February 1, 2004)
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 154,661,000 $ 147,173,000 $ 7,488,000 5.1
National 59,865,000 58,314,000 1,551,000 2.7
Classified 159,121,000 146,656,000 12,465,000 8.5
------------- ------------- ------------ ----
Total Advertising $ 373,647,000 $ 352,143,000 $ 21,504,000 6.1
Circulation 111,871,000 111,892,000 (21,000) (0.0)
Other revenue 29,649,000 29,216,000 433,000 1.5
Television 56,963,000 53,548,000 3,415,000 6.4
------------- ------------- ------------ ----
Total Revenue $ 572,130,000 $ 546,799,000 $ 25,331,000 4.6
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 3,055,207 3,048,486 6,721 0.2
National 357,453 314,865 42,588 13.5
Classified 5,119,852 4,967,292 152,560 3.1
------------- ------------- ------------ ----
Total ROP 8,532,512 8,330,643 201,869 2.4
============= ============= ============ ====
Preprint Distribution
(in thousands) 915,909 892,588 23,321 2.6
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,996,047 7,047,531 (51,484) (0.7)
Evening 1,247,379 1,280,910 (33,531) (2.6)
------------- ------------- ------------ ----
Total Daily 8,243,426 8,328,441 (85,015) (1.0)
============= ============= ============ ====
Sunday 6,983,663 7,142,451 (158,788) (2.2)
============= ============= ============ ====
Year-to-Date through February 1, 2004
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 154,661,000 $ 147,173,000 $ 7,488,000 5.1
National 59,865,000 58,314,000 1,551,000 2.7
Classified 159,121,000 146,656,000 12,465,000 8.5
-------------- -------------- ------------- ----
Total Advertising $ 373,647,000 $ 352,143,000 $ 21,504,000 6.1
Circulation 111,871,000 111,892,000 (21,000) (0.0)
Other revenue 29,649,000 29,216,000 433,000 1.5
Television 56,963,000 53,548,000 3,415,000 6.4
-------------- -------------- ------------- ----
Total Revenue $ 572,130,000 $ 546,799,000 $ 25,331,000 4.6
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 3,055,207 3,048,486 6,721 0.2
National 357,453 314,865 42,588 13.5
Classified 5,119,852 4,967,292 152,560 3.1
-------------- -------------- ------------- ----
Total ROP 8,532,512 8,330,643 201,869 2.4
============== ============== ============= ====
Preprint Distribution
(in thousands) 915,909 892,588 23,321 2.6
============== ============== ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,996,047 7,047,531 (51,484) (0.7)
Evening 1,247,379 1,280,910 (33,531) (2.6)
-------------- -------------- ------------- ----
Total Daily 8,243,426 8,328,441 (85,015) (1.0)
============== ============== ============= ====
Sunday 6,983,663 7,142,451 (158,788) (2.2)
============== ============== ============= ====
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 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). 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 Clipper Magazine 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.