Gannett Releases October Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the tenth period ended October 30, 2005 declined 2.7 percent, resulting from higher advertising demand at its domestic community newspapers offset by significantly lower political ad spending in its broadcasting segment, and lower ad demand at its UK properties. Politically-related ad spending totaled $44 million in October, 2004. For comparison purposes, there was a decline in the exchange rate of Sterling year-over-year in the period.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in October increased 0.6 percent compared with the tenth period in 2004 on 3.7 percent decline in ROP volume and slightly lower preprint distribution.
Pro forma local advertising revenues were unchanged on a 3.5 percent decline in ROP ad volume in October. 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 entertainment, health, financial and home improvement categories while the department stores, furniture, grocery and telecommunications categories lagged last year’s comparable period results.
Pro forma classified revenues were flat in the tenth period on a 4.0 percent decline in ROP ad volume. Employment revenues were up 1.5 percent, real estate revenues increased 6.6 percent while automotive revenues were 13.9 percent lower compared to last year’s tenth period. Overall, the company’s domestic classified results were better than its UK results. In the U.S., employment revenues increased 13.6 percent and real estate revenues were up 11.4 percent in the tenth period while automotive declined 15.5 percent.
Pro forma national advertising revenues in October increased 3.5 percent on a 2.6 percent decline in ad volume. National volume at the company’s local domestic newspapers was down 2.7 percent in the period. USA WEEKEND, our weekly newspaper magazine, experienced higher national revenues in the period. While our revenue statistics include USA WEEKEND’s results, their ad volume is not included in the linage numbers. At USA TODAY, advertising revenues were approximately 1 percent higher on a 3.2 percent decline in paid ad pages to 454 from 469. For the tenth period, at USA TODAY, the automotive, technology, advocacy and entertainment categories were positive while the travel, financial, telecommunications, retail and pharmaceutical categories lagged results for the same period in 2004. For the year-to-date, USA TODAY’s advertising revenues were slightly ahead of last year while paid advertising pages totaled 3,726 versus 3,916 last year.
Pro forma broadcasting revenues, which include Captivate, were 24.7 percent lower in the period. Television revenues declined 26.0 percent reflecting significantly lower politically-related ad
demand compared to the tenth period in 2004. For comparison purposes, television revenues for 2004’s tenth period increased 34.2 percent. Local revenues and national revenues were 3.2 percent and 47.2 percent lower, respectively in October of 2005. Based on October results and pacings for November and December, television revenues for the fourth quarter of 2005 would be below last year’s comparable period in the mid-teens.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share from Nielsen//Net Ratings. In October, Gannett’s consolidated domestic Internet audience share totaled almost 22 million unique visitors reaching approximately 14.4 percent of the Internet audience.
On August 3, 2005, the company and MediaNews Group announced the reorganization of the Detroit Newspaper Agency. As part of the transaction, Knight Ridder sold its newspaper interests in Detroit to Gannett and MediaNews Group and the two newspaper publishers formed the Detroit Newspaper Partnership, L.P. MediaNews Group acquired The Detroit News from Gannett and Gannett acquired the Detroit Free Press. Detroit’s results have been fully consolidated in the financial statements of Gannett along with a minority interest charge for MediaNews Group’s interest.
In a separate transaction on August 29th, the company completed an exchange of assets with Knight Ridder, Inc. in which Knight Ridder received from Gannett The (Boise) Idaho Statesman, and two newspapers in the state of Washington: The (Olympia) Olympian, and The Bellingham Herald. In
return, Gannett received the Tallahassee (FL) Democrat and cash consideration. Therefore, all previously reported results for the former Gannett properties have been reclassified to income from
discontinued operations. In addition, a gain resulting from the exchange has been included in discontinued operations.
The pro forma advertising and circulation revenue statistics include the results for Exchange & Mart and Auto Exchange (acquired in September 2005), Tallahassee (acquired August 29, 2005), 100 percent of the Detroit Newspaper Partnership (established August 2005), Mint Magazine (acquired in July 2005), HomeTown Communications (acquired in late March 2005), Captivate (acquired in April 2004) and NurseWeek (acquired in February 2004). The pro forma other revenue statistics include the results for PointRoll, Inc. (acquired in June 2005). 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. The revenue and statistical data related to the former Gannett owned newspapers in Bellingham (WA), Olympia (WA) and Boise (ID) has been excluded from all periods presented.
Gannett Co., Inc. is a leading international news and information company that publishes 99 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns more than 900 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 10 (Sep. 26, 2005 - Oct. 30, 2005)
%
2005 2004 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 220,664,000 $ 220,621,000 $ 43,000 0.0
National 89,297,000 86,262,000 3,035,000 3.5
Classified 203,494,000 203,484,000 10,000 0.0
--------------- ------------- ------------- ----
Total Advertising $ 513,455,000 $ 510,367,000 $ 3,088,000 0.6
Circulation 122,588,000 125,960,000 (3,372,000) (2.7)
Other revenue 46,766,000 41,340,000 5,426,000 13.1
Broadcasting 80,600,000 106,979,000 (26,379,000) (24.7)
--------------- ------------- ------------ ----
Total Revenue $ 763,409,000 $ 784,646,000 $ (21,237,000) (2.7)
=============== ============= ============= ====
VOLUME:
Newspaper Inches:
Local 3,581,852 3,709,947 (128,095) (3.5)
National 431,538 443,277 (11,739) (2.6)
Classified 5,601,599 5,832,113 (230,514) (4.0)
--------------- ------------- ------------- ----
Total ROP 9,614,989 9,985,337 (370,348) (3.7)
=============== ============= ============= ====
Preprint Distribution
(in thousands) 1,188,437 1,192,287 (3,850) (0.3)
=============== ============= ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,316,691 7,513,068 (196,377) (2.6)
Evening 918,421 961,644 (43,223) (4.5)
--------------- ------------- ------------- ----
Total Daily 8,235,112 8,474,712 (239,600) (2.8)
=============== ============= ============= ====
Sunday 6,563,534 6,769,758 (206,224) (3.0)
=============== ============= ============= ====
Year-to-Date through Oct. 30, 2005
%
2005 2004 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 1,891,753,000 $ 1,846,447,000 $ 45,306,000 2.5
National 711,291,000 702,114,000 9,177,000 1.3
Classified 1,927,747,000 1,879,352,000 48,395,000 2.6
--------------- ------------- ------------- ----
Total Advertising $ 4,530,791,000 $ 4,427,913,000 $ 102,878,000 2.3
Circulation 1,121,743,000 1,122,014,000 (271,000) (0.0)
Other revenue 373,610,000 340,338,000 33,272,000 9.8
Television 609,403,000 697,786,000 (88,383,000) (12.7)
--------------- ------------- ------------- ----
Total Revenue $ 6,635,547,000 $ 6,588,051,000 $ 47,496,000 0.7
=============== ============= ============= ====
VOLUME:
Newspaper Inches:
Local 30,271,085 30,947,475 (676,390) (2.2)
National 3,552,245 3,704,838 (152,593) (4.1)
Classified 49,915,057 50,792,148 (877,091) (1.7)
--------------- ------------- ------------- ----
Total ROP 83,738,387 85,444,461 (1,706,074) (2.0)
=============== ============= ============= ====
Preprint Distribution
(in thousands) 10,249,677 10,044,145 205,532 2.0
=============== ============= ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,238,672 7,413,035 (174,363) (2.4)
Evening 927,972 968,703 (40,731) (4.2)
--------------- ------------- ------------- ----
Total Daily 8,166,644 8,381,738 (215,094) (2.6)
=============== ============= ============= ====
Sunday 6,587,611 6,799,509 (211,898) (3.1)
=============== ============= ============= ====
Note: The above revenue amounts and statistics have been restated to include all companies presently owned, including the Exchange & Mart and Auto Exchange (non-daily publications acquired in September 2005), the Tallahassee Democrat
(acquired August 29, 2005), 100% of the Detroit Newspaper Partnership (established August 2005), Mint Magazine (acquired in July 2005), PointRoll, Inc. (acquired in June 2005), HomeTown Communications (acquired in late March 2005), Captivate (acquired in April 2004) and NurseWeek (acquired in February 2004). PointRoll is a marketing services company with a suite of media products that delivers enhanced online marketing opportunities for advertisers,
agencies and online publishers. PointRoll is included above in Other revenue.
The Tallahassee (FL) Democrat is published in the morning and has an average
daily paid circulation of 52,000 (Sunday – 68,000). 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. The revenue and statistical data related to the former Gannett owned newspapers in Bellingham (WA), Olympia (WA) and Boise (ID) has been 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 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 statistics for Detroit Free Press, a morning newspaper, are
reflected above. Circulation volume statistics for The Detroit News, an evening newspaper, are not reflected above. Circulation volume and advertising linage statistics for non-daily products, including NurseWeek and Clipper Magazine are not reflected above.
--------------------------------------------------------------------------Gannett Online Internet Audience
October 2005Nielsen//NetRatings
Home/Work Panel CombinedUnique Visitors Percentage Reach of
Per Month Internet AudienceGannett Online 21,852,000 14.4%