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 30, 2004 increased 7.4 percent, driven by increases in advertising demand for both the newspaper and broadcasting segments. 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 risen 5.9 percent.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in May increased 9.0 percent compared with 2003’s fifth period on a 1.4 percent advance in ROP volume and a 0.8 percent decrease in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have increased
7.1 percent.
Pro forma classified revenues increased 13.1 percent in the fifth period on a 2.1 percent increase in ROP ad volume. Employment revenues increased 25.0 percent compared to the fifth period last year. Classified real estate revenues increased 9.5 percent and automotive was slightly below last year. On a constant currency basis, employment revenues and real estate revenues would have increased 20.2 percent and 6.1 percent, respectively, while automotive would have declined 2.0 percent. On a constant currency basis, pro forma classified revenues would have increased 9.9 percent.
Pro forma local advertising revenues increased 4.9 percent on 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., across all products, local ad revenue gains achieved in the grocery, health, financial, telecommunications and home improvement categories were offset by declines in the department store, consumer electronics and entertainment categories in the fifth period. On a constant currency basis, pro forma local advertising would have increased 3.9 percent.
Pro forma national advertising revenues rose 9.3 percent on a 3.8 percent increase in ad volume. National volume at the company’s local domestic newspapers advanced 4.9 percent in the period compared with the same period in 2003. At USA TODAY, advertising revenues were up
10.9 percent on an almost 1 percent increase in paid ad pages to 398 from 394. USA TODAY’s year-to-date paid pages totaled 1,978 compared to 1,907 for the prior year while ad revenues were 13.5 percent higher. For the fifth period, at USA TODAY, results for the entertainment, automotive, telecommunications, packaged goods, and advocacy categories increased over the prior year period while the travel and technology categories decreased.
Pro forma broadcasting revenues increased 9.5 percent in the period. Local revenues rose
2.2 percent and national revenues advanced 21.2 percent. Based on current pacings, television revenues for the quarter would be ahead of last year’s second quarter results in the high single digits.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for April from Nielsen//NetRatings. In April, Gannett’s domestic Websites had 18.5 million unique visitors reaching 12 percent of the Internet audience.
The pro forma advertising and circulation revenue statistics include the results of Captivate (acquired in April 2004), NurseWeek (acquired in February 2004), Clipper Magazine (acquired in October 2003), the SMG (Newsquest’s Scottish Media Group) publishing business and the Texas-New Mexico Newspapers Partnership 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.
Prior to 2004, 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. Print and online ad revenues are now 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.
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
Period 5 (May 3, 2004 - May 30, 2004)
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 161,232,000 $ 153,652,000 $ 7,580,000 4.9
National 62,801,000 57,460,000 5,341,000 9.3
Classified 165,423,000 146,233,000 19,190,000 13.1
------------- ------------- ------------ ----
Total Advertising $ 389,456,000 $ 357,345,000 $ 32,111,000 9.0
Circulation 94,406,000 92,464,000 1,942,000 2.1
Other revenue 30,306,000 29,924,000 382,000 1.3
Broadcasting 69,501,000 63,497,000 6,004,000 9.5
------------- ------------- ------------ ----
Total Revenue $ 583,669,000 $ 543,230,000 $ 40,439,000 7.4
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 2,969,340 2,965,517 3,823 0.1
National 343,628 331,156 12,472 3.8
Classified 4,839,670 4,739,937 99,733 2.1
------------- ------------- ------------ ----
Total ROP 8,152,638 8,036,610 116,028 1.4
============= ============= ============ ====
Preprint Distribution
(in thousands) 858,015 865,179 (7,164) (0.8)
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,103,837 7,022,203 81,634 1.2
Evening 1,221,355 1,288,691 (67,336) (5.2)
------------- ------------- ------------ ----
Total Daily 8,325,192 8,310,894 14,298 0.2
============= ============= ============ ====
Sunday 6,851,500 6,974,535 (123,035) (1.8)
============= ============= ============ ====
Year-to-Date through May 30, 2004
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 827,450,000 $ 785,295,000 $ 42,155,000 5.4
National 320,551,000 289,405,000 31,146,000 10.8
Classified 844,017,000 749,464,000 94,553,000 12.6
-------------- -------------- ------------- ----
Total Advertising $ 1,992,018,000 $ 1,824,164,000 $ 167,854,000 9.2
Circulation 521,148,000 516,012,000 5,136,000 1.0
Other revenue 160,264,000 154,413,000 5,851,000 3.8
Broadcasting 321,471,000 297,586,000 23,885,000 8.0
-------------- -------------- ------------- ----
Total Revenue $ 2,994,901,000 $ 2,792,175,000 $ 202,726,000 7.3
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 15,231,541 15,217,213 14,328 0.1
National 1,788,995 1,623,004 165,991 10.2
Classified 24,719,215 23,926,477 792,738 3.3
-------------- -------------- ------------- ----
Total ROP 41,739,751 40,766,694 973,057 2.4
============== ============== ============= ====
Preprint Distribution
(in thousands) 4,547,587 4,498,923 48,664 1.1
============== ============== ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,181,080 7,161,226 19,854 0.3
Evening 1,228,705 1,265,687 (36,982) (2.9)
-------------- -------------- ------------- ----
Total Daily 8,409,785 8,426,913 (17,128) (0.2)
============== ============== ============= ====
Sunday 6,953,851 7,087,062 (133,211) (1.9)
============== ============== ============= ====
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 Captivate (acquired in April 2004), NurseWeek (acquired in February 2004), 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). Captivate is a national news and entertainment network that delivers quality programming and full motion video advertising to more than 1.4 million consumers and business professionals each day through wireless digital video screens in the elevators of premier office towers across North America. Captivate is included above in Broadcasting revenue. NurseWeek is a multimedia company with print publications focused on the recruitment, recognition and education of nurses. Clipper Magazine is a direct-mail advertising magazine company publishing over 345 individual market editions in 24 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 non-daily products, including NurseWeek and 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.
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Gannett Online Internet Audience April 2004Nielsen//NetRatings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 18,471,000 12%