Gannett Releases July Statistical Report and Third-Quarter Earnings Guidance
MCLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the seventh period ended August 4, 2002 increased 2 percent.
Pro forma newspaper advertising revenues in July were up 1 percent compared with the same period in 2001 on a 4 percent increase in ROP volume and an 8 percent increase in preprint distribution.
Pro forma classified revenues increased 1 percent in the July period on a 5 percent increase in ad volume. Employment revenues decreased 9 percent. Classified real estate revenues advanced 6 percent, and automotive also increased by 5 percent.
Pro forma local advertising revenues increased 4 percent on a 1 percent increase 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 decreased 6 percent on a 2 percent increase in ad volume. National volume at the company’s local domestic newspapers grew 6 percent. At USA TODAY, advertising revenues declined 11 percent on a 16 percent decline in paid ad pages to 380 from 454. For the year-to-date, USA TODAY’s paid pages numbered 2,794 compared to 3,232 last year, while ad revenues were 10 percent lower.
Pro forma television revenues increased 16 percent in the seventh period. National revenues increased 21 percent and local revenues grew 15 percent.
Gannett Chairman, President and CEO Douglas H. McCorkindale, commenting on the outlook for the third quarter, said that based on current trends, “the company is comfortable with the First Call consensus estimate of 98 cents per diluted share for the quarter.”
In addition to the revenue and statistical summary, attached is a chart, which shows the consolidated Gannett Online audience shares for July from Nielsen/Net Ratings. In July, Gannett’s domestic Websites had more than 13 million unique visitors reaching over 11 percent of the Internet audience. Newsquest is also an Internet leader in the U.K.
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 an 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 300 non-daily publications in the USA and USA WEEKEND, a weekly newspaper magazine. In the United Kingdom, Gannett subsidiary Newsquest plc publishes more than 300 titles, including 15 daily newspapers. Gannett also operates 22 television stations in the United States and is an Internet leader with sites sponsored by its TV stations and newspapers including USA TODAY.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 of Finance and Treasurer
703-854-6918
gmartore@gannett.com
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
Period 7 (July 1, 2002 - August 4, 2002)
%
2002 2001 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 151,331,000 $ 146,022,000 $ 5,309,000 4
National 53,903,000 57,092,000 (3,189,000) (6)
Classified 157,925,000 156,571,000 1,354,000 1
------------- ------------- ----------- ----
Total Advertising $ 363,159,000 $ 359,685,000 $ 3,474,000 1
Circulation 116,001,000 115,376,000 625,000 1
Television 60,487,000 52,176,000 8,311,000 16
------------- ------------- ----------- ----
Total Revenue $ 539,647,000 $ 527,237,000 $12,410,000 2
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 3,289,272 3,249,626 39,646 1
National 324,159 317,127 7,032 2
Classified 5,521,166 5,245,225 275,941 5
------------- ------------- ----------- ----
Total ROP 9,134,597 8,811,978 322,619 4
============= ============= =========== ====
Preprint Distribution
(in thousands) 879,329 815,678 63,651 8
============= ============= =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,737,950 6,746,577 (8,627) (0)
Evening 1,175,902 1,198,195 (22,293) (2)
------------- ------------- ----------- ----
Total Daily 7,913,852 7,944,772 (30,920) (0)
============= ============= =========== ====
Sunday 6,817,376 6,858,684 (41,308) (1)
============= ============= =========== ====
Year-to-Date through August 4, 2002
%
2002 2001 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 1,040,314,000 $ 1,042,381,000 $ (2,067,000) (0)
National 401,900,000 421,704,000 (19,804,000) (5)
Classified 1,028,582,000 1,067,142,000 (38,560,000) (4)
------------- ------------- ----------- ----
Total Advertising $ 2,470,796,000 $ 2,531,227,000 $ (60,431,000) (2)
Circulation 762,254,000 762,612,000 (358,000) (0)
Television 418,972,000 386,480,000 32,492,000 8
------------- ------------- ----------- ----
Total Revenue $ 3,652,022,000 $ 3,680,319,000 $ (28,297,000) (1)
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 22,055,849 22,273,724 (217,875) (1)
National 2,261,601 2,259,357 2,244 0
Classified 33,666,212 32,239,844 1,426,368 4
------------- ------------- ----------- ----
Total ROP 57,983,662 56,772,925 1,210,737 2
============= ============= =========== ====
Preprint Distribution
(in thousands) 5,912,185 5,706,832 205,353 4
============= ============= =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,950,929 6,983,841 (32,912) (0)
Evening 1,214,191 1,238,027 (23,836) (2)
------------- ------------- ----------- ----
Total Daily 8,165,120 8,221,868 (56,748) (1)
============= ============= =========== ====
Sunday 6,981,391 7,034,145 (52,754) (1)
============= ============= =========== ====
Note: The above revenue and statistics include the pro rata portion from our 50% owned joint operating agencies, consistent with past practice.
The above revenue amounts and statistics have been restated to include all companies presently owned.
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 July 2002Nielsen/Net Ratings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 13,402,000 11.3% Gannett Online includes all domestic Gannett owned Web sites including USATODAY.com.