Gannett Releases November Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the eleventh period ended November 30, 2003 were 3 percent above the same period last year. 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 November rose 5 percent compared with the same period in 2002 on a 1 percent increase in ROP volume and a 5 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 percent.
Pro forma classified revenues increased 8 percent in the November period on a 4 percent increase in ad volume. Employment revenues increased 4 percent from the same period last year. On a constant currency basis, employment revenue would have increased 1 percent. Classified real estate revenues increased 11 percent and automotive rose 2 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 6 percent.
Pro forma local advertising revenues rose 3 percent in the eleventh 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., local ad revenue gains were achieved in the grocery, health, financial, telecommunications and entertainment categories while there was continued softness in department stores and consumer electronics.
Pro forma national advertising revenues increased 6 percent on an 8 percent increase in ad volume. National volume at the company’s local domestic newspapers rose 8 percent in the period compared with the same interval in 2002. USA WEEKEND, our weekly newspaper magazine, experienced lower national ad revenues during the period. While our revenue statistics include their results, USA WEEKEND ad volume is not included in the linage numbers.
At USA TODAY, advertising revenues were 7 percent higher on a 6 percent increase in paid ad pages to 461 from 436. For the month, at USA TODAY, entertainment, automotive, telecommunications, financial and pharmaceutical advertising were strong and more than offset lower travel and technology spending. For the year-to-date, USA TODAY’s paid pages numbered 4,392 versus 4,385 last year while ad revenues were 4 percent higher than last year.
Television revenues declined 5 percent in the period reflecting reduced political advertising. National revenues fell 10 percent and local revenues declined 3 percent. For comparison purposes, television revenues rose 13 percent in the same period last year. Based on November results and pacings for December, television revenues are currently lagging last year’s fourth quarter results in the mid teens.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for October from Nielsen//Net Ratings. In October, Gannett’s domestic Websites had 14.4 million unique visitors reaching about 11 percent of the Internet audience.
The pro forma advertising and circulation revenue statistics include the results of the SMG (Newsquest’s Scottish Media Group) publishing business, Texas-New Mexico Newspapers Partnership and Clipper Magazine as if they had been owned in both years. Ad linage for Newsquest and Clipper 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 almost 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 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 11 (November 3, 2003 - November 30, 2003)
%
2003 2002 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 184,219,000 $ 179,129,000 $ 5,090,000 3
National 70,121,000 66,327,000 3,794,000 6
Classified 145,091,000 133,993,000 11,098,000 8
------------- ------------- ------------ ----
Total Advertising $ 399,431,000 $ 379,449,000 $ 19,982,000 5
Circulation 94,981,000 94,775,000 206,000 0
Other revenue 36,007,000 33,858,000 2,149,000 6
Television 63,454,000 66,816,000 (3,362,000) (5)
------------- ------------- ------------ ----
Total Revenue $ 593,873,000 $ 574,898,000 $ 18,975,000 3
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 3,437,772 3,540,616 (102,844) (3)
National 378,219 350,592 27,627 8
Classified 4,585,312 4,395,731 189,581 4
------------- ------------- ------------ ----
Total ROP 8,401,303 8,286,939 114,364 1
============= ============= ============ ====
Preprint Distribution
(in thousands) 1,131,642 1,076,348 55,294 5
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,172,114 7,219,803 (47,689) (1)
Evening 1,253,176 1,304,381 (51,205) (4)
------------- ------------- ------------ ----
Total Daily 8,425,290 8,524,184 (98,894) (1)
============= ============= ============ ====
Sunday 7,093,997 7,187,730 (93,733) (1)
============= ============= ============ ====
Year-to-Date through November 30, 2003
%
2003 2002 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 1,748,159,000 $ 1,691,612,000 $ 56,547,000 3
National 669,366,000 634,771,000 34,595,000 5
Classified 1,705,930,000 1,625,622,000 80,308,000 5
-------------- -------------- ------------- ----
Total Advertising $ 4,123,455,000 $ 3,952,005,000 $ 171,450,000 4
Circulation 1,123,504,000 1,119,074,000 4,430,000 0
Other revenue 351,294,000 333,077,000 18,217,000 5
Television 665,087,000 715,181,000 (50,094,000) (7)
-------------- -------------- ------------- ----
Total Revenue $ 6,263,340,000 $ 6,119,337,000 $ 144,003,000 2
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 34,352,300 35,008,830 (656,530) (2)
National 3,738,648 3,475,515 263,133 8
Classified 54,550,275 52,700,848 1,849,427 4
-------------- -------------- ------------- ----
Total ROP 92,641,223 91,185,193 1,456,030 2
============== ============== ============= ====
Preprint Distribution
(in thousands) 10,180,660 9,359,623 821,037 9
============== ============== ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,078,134 7,139,913 (61,779) (1)
Evening 1,260,245 1,300,037 (39,792) (3)
-------------- -------------- ------------- ----
Total Daily 8,338,379 8,439,950 (101,571) (1)
============== ============== ============= ====
Sunday 7,038,669 7,097,078 (58,409) (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 Clipper Magazine (acquired in late October 2003) and SMG Publishing (acquired in April 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.
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Gannett Online Internet Audience October 2003Nielsen//NetRatings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 14,439,000 11%