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 December 2, 2007 declined 4.6 percent compared with the same period in 2006. For comparison purposes, the strengthening exchange rate of the British pound also 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 been 5.8 percent lower.
Pro forma newspaper advertising revenues in the eleventh period were down 3.9 percent compared with the same period a year ago. Pro forma assumes all properties presently owned were owned in both periods. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising would have been 5.4 percent lower.
Pro forma local advertising revenues increased 1.6 percent in November. On a constant currency basis, local advertising would have been almost 1 percent higher.
Pro forma classified revenues declined 11.2 percent in the eleventh period. On a constant currency basis, pro forma classified revenues would have been 13.7 percent lower. Real estate revenues declined 17.0 percent, employment revenues were down 14.4 percent, and automotive revenues were 10.0 percent lower. If the exchange rate had remained constant year-over-year, the declines would have been 19.5 percent for real estate, 16.8 percent for employment and 12.0 percent for automotive. Classified results at Newsquest in the UK were better than in the U.S. community newspapers. At our U.S. community newspapers, pro forma classified revenues were 18.4 percent lower in November reflecting declines of 28.4 percent in real estate revenues, 23.5 percent in employment revenues and 8.3 percent in automotive revenues.
Pro forma national advertising revenues in November were 3.5 percent lower. At USA TODAY, advertising revenues were down 1.6 percent on paid ad pages of 364 versus 392 last year. For comparison purposes, USA TODAY’s ad revenues were up 20.1 percent in the eleventh period of 2006. In the eleventh period of 2007 at USA TODAY, strong growth in the automotive, financial, advocacy, packaged goods and restaurant categories was offset by declines in the technology, entertainment, travel, retail and pharmaceutical categories.
Pro forma broadcasting revenues, which include Captivate, declined 19.2 percent in the period. The decline was due to significantly lower politically related advertising demand that positively impacted the same period in 2006. Television revenues were down 20.4 percent in November as local and national revenues were 11.2 percent and 36.8 percent lower, respectively. Excluding political advertising, net time sales revenue increased 6.4 percent in the period. Online revenues in television were 16.2 percent higher in the period.
Based on results for October and November and pacings for December, television revenues for the fourth quarter of 2007 would lag last year’s fourth quarter on a percentage basis in the very high teens to the very low twenties. As a reminder, revenues related to political advertising were almost $58 million in the fourth quarter of 2006.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for November from Nielsen//Net Ratings. In November, Gannett’s domestic Web sites had 22.0 million unique visitors reaching approximately 13.7 percent of the Internet audience.
On May 7, 2007, the company completed its sale of the Norwich (CT) Bulletin, the Rockford (IL) Register Star, the Observer-Dispatch in Utica, NY, and The Herald-Dispatch in Huntington, WV. In addition, the Chronicle-Tribune in Marion, IN, was contributed to the Gannett Foundation on May 21, 2007. The revenue and statistical data related to these properties has been excluded from all periods presented.
The pro forma broadcasting revenue statistics include results for KTVD-TV in Denver (acquired in late June 2006 and operated as a duopoly with KUSA-TV) and WATL-TV in Atlanta (acquired in August 2006 and operated as a duopoly with WXIA-TV). Ad linage for Newsquest, Clipper and Gannett Healthcare Group 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 85 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns nearly 1,000 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 nearly 300 titles, including 18 daily newspapers, and a network of prize-winning Web sites. Gannett also operates 23 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 5, 2007 - December 2, 2007)
%
2007 2006 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 205,652,000 $ 202,348,000 $ 3,304,000 1.6
National 72,970,000 75,598,000 (2,628,000) (3.5)
Classified 141,785,000 159,676,000 (17,891,000) (11.2)
-------------- ------------- ------------- -----
Total Advertising $ 420,407,000 $ 437,622,000 $ (17,215,000) (3.9)
============== ============= ============= =====
Circulation 98,470,000 97,709,000 761,000 0.8
Other revenue 45,812,000 43,042,000 2,770,000 6.4
Broadcasting 70,012,000 86,604,000 (16,592,000) (19.2)
-------------- ------------- ------------- -----
Total Revenue $ 634,701,000 $ 664,977,000 $ (30,276,000) (4.6)
============== ============= ============= =====
VOLUME:
Newspaper Inches:
Local 2,796,700 2,942,552 (145,852) (5.0)
National 274,006 288,041 (14,035) (4.9)
Classified 3,448,371 3,881,656 (433,285) (11.2)
-------------- ------------- ------------- -----
Total ROP 6,519,077 7,112,249 (593,172) (8.3)
============== ============= ============= =====
Preprint Distribution
(in thousands) 1,238,957 1,175,365 63,592 5.4
============== ============= ============= =====
NET PAID CIRCULATION:
Morning (w/USAT) 6,726,460 6,903,836 (177,376) (2.6)
Evening 840,585 881,859 (41,274) (4.7)
-------------- ------------- ------------- -----
Total Daily 7,567,045 7,785,695 (218,650) (2.8)
============== ============= ============= =====
Sunday 5,819,913 6,106,685 (286,772) (4.7)
============== ============= ============= =====
Year-to-Date through December 2, 2007
%
2007 2006 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 1,994,473,000 $ 2,035,755,000 $ (41,282,000) (2.0)
National 702,089,000 728,809,000 (26,720,000) (3.7)
Classified 1,875,982,000 2,015,312,000 (139,330,000) (6.9)
-------------- ------------- ------------- -----
Total Advertising $ 4,572,544,000 $ 4,779,876,000 $ (207,332,000) (4.3)
============== ============= ============= =====
Circulation 1,154,245,000 1,156,115,000 (1,870,000) (0.2)
Other revenue 470,324,000 441,562,000 28,762,000 6.5
Broadcasting 730,914,000 810,047,000 (79,133,000) (9.8)
-------------- ------------- ------------- -----
Total Revenue $ 6,928,027,000 $ 7,187,600,000 $ (259,573,000) (3.6)
============== ============= ============= =====
VOLUME:
Newspaper Inches:
Local 28,645,423 30,161,698 (1,516,275) (5.0)
National 2,741,610 2,971,936 (230,326) (7.8)
Classified 45,278,545 49,764,219 (4,485,674) (9.0)
-------------- ------------- ------------- -----
Total ROP 76,665,578 82,897,853 (6,232,275) (7.5)
============== ============= ============= =====
Preprint Distribution
(in thousands) 10,523,341 10,743,759 (220,418) (2.1)
============== ============= ============= =====
NET PAID CIRCULATION:
Morning (w/USAT) 6,718,279 6,833,521 (115,242) (1.7)
Evening 851,559 879,510 (27,951) (3.2)
-------------- ------------- ------------- -----
Total Daily 7,569,838 7,713,031 (143,193) (1.9)
============== ============= ============= =====
Sunday 5,843,152 6,076,078 (232,926) (3.8)
============== ============= ============= =====
Note: The above revenue amounts and statistics have been restated to include all companies presently owned, including KTVD-TV in Denver (acquired in late June 2006 and operated as a duopoly along with KUSA-TV) and WATL-TV in Atlanta (acquired in August 2006 and operated as a duopoly along with WXIA-TV). In May 2007, Gannett sold the Norwich (CT) Bulletin, the Rockford (IL) Register Star, the Observer-Dispatch in Utica, NY and The Herald-Dispatch in Huntington, WV. In May 2007 and April 2006, Gannett contributed the Chronicle-Tribune in Marion, IN and the Muskogee (OK) Phoenix, respectively, to the Gannett Foundation. All revenue amounts and statistics related to the sold and donated properties are excluded from all periods presented.
Operating results from the company’s newspaper in Tucson, which participates in a joint operating agency, are accounted for under the equity method of accounting and are reported as a single amount in other operating revenues. Advertising linage statistics from this newspaper are not included above, however, circulation volume statistics are included.
Newsquest is a regional newspaper publisher in the United Kingdom with nearly 300 titles, including paid and unpaid daily and non-daily products. Circulation volume statistics for Newsquest’s 17 paid-for daily newspapers are included above. Circulation volume statistics for the 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 Gannett Healthcare Group and Clipper Magazine are not reflected above.
Gannett Online Internet Audience November 2007 Nielsen//Net Ratings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 22,004,000 13.7%