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 June 1, 2003 increased 4 percent. For comparison purposes, the continued increase in the exchange rate of Sterling year-over-year affected results for the company’s U.K. operations. If the exchange rate had remained constant year-over-year, total pro forma operating revenues would have increased 2 percent.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in May were up 4 percent compared with the same period in 2002 on a 1 percent increase in ROP volume and a 12 percent advance in preprint distribution. If the exchange rate had remained constant year-over-year, pro forma newspaper advertising revenues would have risen 3 percent.
Pro forma classified revenues advanced 4 percent in the May period on a 3 percent increase in ad volume. Employment revenues declined 6 percent from the same period last year. Classified real estate revenues advanced 13 percent, and automotive increased 5 percent. Overall, the company’s classified results from Newsquest were stronger than its domestic results.
Pro forma local advertising revenues rose 3 percent in the May period on a 3 percent decline 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. In the U.S., newspaper gains were achieved in the entertainment, health, financial and restaurant categories while there was softness in department stores, consumer electronics and grocery ad spending.
Pro forma national advertising revenues increased 10 percent on an 8 percent increase in ad volume. National volume at the company’s local domestic newspapers increased 8 percent in the period compared with the same interval in 2002. At USA TODAY, advertising revenues rose 11 percent on a 10 percent increase in paid ad pages to 394 from 359. For the month, automotive, technology, entertainment and telecommunications advertising were strong but soft travel advertising partially offset these gains. For the year-to-date, USA TODAY’s paid pages numbered 1,907 versus 1,995 last year while ad revenues were 1 percent higher.
Television revenues increased 1 percent in the period. Local revenues rose 5 percent while national revenues declined 5 percent. Television pacings for June are currently trailing last year’s same period results. For comparison purposes, television revenues increased 16 percent in June of 2002.
The pro forma advertising and circulation revenue statistics include the results of the SMG (Scottish Media Group) publishing business as if it had been owned in both years. 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 a leading international news and information company that publishes 100 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns in excess of 400 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 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:
Gracia Martore
Senior Vice President and Chief Financial Officer
703-854-6918
gmartore@gannett.com
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
Period 5 (May 5, 2003 - June 1, 2003)
%
2003 2002 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 143,596,000 $ 139,668,000 $ 3,928,000 3
National 56,867,000 51,845,000 5,022,000 10
Classified 146,083,000 140,475,000 5,608,000 4
------------- ------------- ------------ ----
Total Advertising $ 346,546,000 $ 331,988,000 $ 14,558,000 4
Circulation 92,664,000 92,454,000 210,000 0
Other revenue 30,900,000 26,635,000 4,265,000 16
Television 62,737,000 61,975,000 762,000 1
------------- ------------- ------------ ----
Total Revenue $ 532,847,000 $ 513,052,000 $ 19,795,000 4
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 2,989,778 3,095,285 (105,507) (3)
National 333,656 309,143 24,513 8
Classified 4,768,777 4,615,770 153,007 3
------------- ------------- ------------ ----
Total ROP 8,092,211 8,020,198 72,013 1
============= ============= ============ ====
Preprint Distribution
(in thousands) 870,599 776,532 94,067 12
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,017,119 7,082,950 (65,831) (1)
Evening 1,320,726 1,343,078 (22,352) (2)
------------- ------------- ------------ ----
Total Daily 8,337,845 8,426,028 (88,183) (1)
============= ============= ============ ====
Sunday 6,942,816 7,020,658 (77,842) (1)
============= ============= ============ ====
Year-to-Date through June 1, 2003
%
2003 2002 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 739,028,000 $ 713,755,000 $ 25,273,000 4
National 287,699,000 279,302,000 8,397,000 3
Classified 748,456,000 719,536,000 28,920,000 4
-------------- -------------- ------------- ----
Total Advertising $ 1,775,183,000 $ 1,712,593,000 $ 62,590,000 4
Circulation 516,619,000 512,565,000 4,054,000 1
Other revenue 154,304,000 140,407,000 13,897,000 10
Television 293,565,000 298,892,000 (5,327,000) (2)
-------------- -------------- ------------- ----
Total Revenue $ 2,739,671,000 $ 2,664,457,000 $ 75,214,000 3
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 15,345,073 15,602,730 (257,657) (2)
National 1,634,824 1,530,647 104,177 7
Classified 24,086,557 23,282,991 803,566 3
-------------- -------------- ------------- ----
Total ROP 41,066,454 40,416,368 650,086 2
============== ============== ============= ====
Preprint Distribution
(in thousands) 4,529,333 4,064,963 464,370 11
============== ============== ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,154,409 7,172,108 (17,699) (0)
Evening 1,296,262 1,330,100 (33,838) (3)
-------------- -------------- ------------- ----
Total Daily 8,450,671 8,502,208 (51,537) (1)
============== ============== ============= ====
Sunday 7,051,515 7,096,937 (45,422) (1)
============== ============== ============= ====
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 SMG Publishing (acquired in April 2003). 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.