Gannett Releases May Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the fifth period ended May 29, 2005 increased 3.2 percent, resulting from solid advertising results in its U.S. operations. Broadcasting revenues declined 6.6 percent primarily reflecting significantly lower political ad spending. For comparison purposes, the 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 2.3 percent.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in the fifth period were up 4.7 percent compared with the same period in 2004 on a
2.5 percent decline in ROP ad volume and a 2.0 percent increase in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have been
3.6 percent higher. Newsquest’s advertising revenue on a constant currency basis lagged both its results for the same period last year and current period ad revenues for the domestic community newspapers.
Pro forma classified revenues advanced 4.0 percent in May on a 2.6 percent decline in ROP ad volume. On a constant currency basis, pro forma classified revenues would have been up 2.3 percent. Classified employment and real estate revenues increased 6.8 percent and 7.3 percent, respectively, compared to the same period last year. Automotive revenues declined 7.4 percent. On a constant currency basis, employment revenues would have been up 4.5 percent, real estate revenues would have been 5.2 percent higher while auto would have been 8.3 percent lower.
Pro forma local advertising revenues increased 5.3 percent on a 1.9 percent decline 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., across all products, local ad revenue gains were achieved in the consumer electronics, entertainment, grocery, health, financial and telecommunications categories. However, the department stores, restaurants and home improvement categories lagged last year’s results. On a constant currency basis, pro forma local advertising would have increased 4.7 percent.
Pro forma national advertising revenues were 4.8 percent higher on a 6.5 percent decline in ad volume. National volume at the company’s local domestic newspapers declined 6.7 percent in the period compared with the same interval in 2004. At USA TODAY, advertising revenues were up 7.7 percent on a 1.0 percent decline in paid ad pages to 394 from 398. USA TODAY’s year-to-date paid pages totaled 1,930 compared to 1,978 for the prior year while ad revenues increased 3.4 percent. For the fifth period, at USA TODAY, results for the automotive, technology, pharmaceutical and financial categories were strong while the entertainment, travel, telecommunications and packaged goods categories declined versus last year’s results. Based on current trends for USA TODAY, June revenues may lag last year’s same period results.
Pro forma broadcasting revenues, including Captivate, were 6.6 percent lower in the period. Local television revenues lagged last May’s results slightly while national revenues were down 18.3 percent. Based on results to date and current pacings for June, television revenues are lagging last year’s second quarter results in the high single digits.
The pro forma advertising and circulation revenue statistics include the results for HomeTown Communications (acquired in late March 2005), Captivate (acquired in April 2004) and NurseWeek (acquired in February 2004). 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 800 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 5 (May 2, 2005 - May 29, 2005)
%
2005 2004 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 175,576,000 $ 166,780,000 $ 8,796,000 5.3
National 65,431,000 62,418,000 3,013,000 4.8
Classified 175,368,000 168,587,000 6,781,000 4.0
------------- ------------- ------------ ----
Total Advertising $ 416,375,000 $ 397,785,000 $ 18,590,000 4.7
Circulation 96,988,000 95,015,000 1,973,000 2.1
Other revenue 33,710,000 30,818,000 2,892,000 9.4
Broadcasting 64,908,000 69,501,000 (4,593,000) (6.6)
------------- ------------- ------------ ----
Total Revenue $ 611,981,000 $ 593,119,000 $ 18,862,000 3.2
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 2,958,744 3,016,509 (57,765) (1.9)
National 321,442 343,817 (22,375) (6.5)
Classified 4,801,204 4,931,009 (129,805) (2.6)
------------- ------------- ------------ ----
Total ROP 8,081,390 8,291,335 (209,945) (2.5)
============= ============= ============ ====
Preprint Distribution
(in thousands) 879,629 862,501 17,128 2.0
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,017,901 7,134,749 (116,848) (1.6)
Evening 1,173,666 1,220,404 (46,738) (3.8)
------------- ------------- ------------ ----
Total Daily 8,191,567 8,355,153 (163,586) (2.0)
============= ============= ============ ====
Sunday 6,684,466 6,870,928 (186,462) (2.7)
============= ============= ============ ====
Year-to-Date through May 29, 2005
%
2005 2004 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 886,539,000 $ 847,583,000 $ 38,956,000 4.6
National 328,793,000 318,960,000 9,833,000 3.1
Classified 903,141,000 858,589,000 44,552,000 5.2
------------- ------------- ------------ ----
Total Advertising $2,118,473,000 $2,025,132,000 $ 93,341,000 4.6
Circulation 530,717,000 524,277,000 6,440,000 1.2
Other revenue 170,313,000 162,945,000 7,368,000 4.5
Television 304,113,000 321,471,000 (17,358,000) (5.4)
------------- ------------- ------------ ----
Total Revenue $3,123,616,000 $3,033,825,000 $ 89,791,000 3.0
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 15,225,989 15,425,866 (199,877) (1.3)
National 1,633,502 1,785,312 (151,810) (8.5)
Classified 24,690,083 25,044,598 (354,515) (1.4)
------------- ------------- ------------ ----
Total ROP 41,549,574 42,255,776 (706,202) (1.7)
============= ============= ============ ====
Preprint Distribution 4,716,116 4,535,391 180,725 4.0
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,051,433 7,212,461 (161,028) (2.2)
Evening 1,180,847 1,228,464 (47,617) (3.9)
------------- ------------- ------------ ----
Total Daily 8,232,280 8,440,925 (208,645) (2.5)
============= ============= ============ ====
Sunday 6,772,063 6,975,098 (203,035) (2.9)
============= ============= ============ ====
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 HomeTown Communications (acquired in
late March 2005), Captivate (acquired in April 2004) and NurseWeek (acquired in February 2004). HomeTown is a community publishing company with one daily newspaper, 62 non-daily community newspapers, 24 community telephone directories and other specialty and niche publications. 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 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 17 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.