Gannett Releases October Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues increased 8.4 percent for the tenth period ended October 31, 2004 reflecting strong political advertising in the company’s broadcasting segment and solid local and classified advertising in the newspaper segment. 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 7.4 percent.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in October increased 5.6 percent compared with the same period in 2003 on a modest increase in ROP volume and a slight decrease in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have advanced 4.4 percent.
Pro forma classified revenues rose 8.9 percent in the tenth period on an almost 1 percent increase in ROP ad volume. On a constant currency basis, pro forma classified revenues would have increased 6.7 percent for October. Employment revenues rose 18.0 percent, real estate revenues advanced 9.8 percent, and automotive declined 4.5 percent compared to last year. On a constant currency basis, employment revenue would have increased 14.9 percent, real estate revenues would have advanced 7.6 percent while automotive would have decreased
5.6 percent.
Pro forma local advertising revenues advanced 5.7 percent on slightly higher 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 furniture, health and telecommunications categories while there was softness in the department store, consumer electronics, entertainment, grocery, financial, restaurant and home improvement categories. On a constant currency basis, pro forma local advertising would have increased 5.0 percent.
Pro forma national advertising revenues fell 1.6 percent on a 1.0 percent decline in ad volume. National volume at the company’s local domestic newspapers increased 3.1 percent in the period compared with the same interval in 2003. At USA TODAY, advertising revenues were 6.2 percent lower on a 20.8 percent decline in paid ad pages to 469 from 592. For the tenth period, at USA TODAY, strength in the financial, advocacy and pharmaceutical categories was more than offset by weakness in the travel, entertainment, automotive, technology and telecommunications categories. For comparison purposes, USA TODAY’s advertising revenues increased 15.0 percent in 2003’s tenth period. For the year-to-date, USA TODAY’s paid pages numbered 3,916 versus 3,931 last year while ad revenues were 9.4 percent higher than last year.
Pro forma broadcasting revenues, which include Captivate, increased 34.8 percent in the period. Television revenues rose 34.2 percent in the period reflecting substantially higher political advertising. National revenues were up 73.0 percent and local revenues increased 8.8 percent. Based on October results and pacings for November and December, television revenues are currently ahead of last year’s fourth quarter revenues 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 September from Nielsen//Net Ratings. In September, Gannett’s domestic Web sites had 19.6 million unique visitors reaching over 13 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 600 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 (September 27, 2004 - October 31, 2004)
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 203,534,000 $ 192,545,000 $ 10,989,000 5.7
National 78,767,000 80,016,000 (1,249,000) (1.6)
Classified 189,468,000 173,986,000 15,482,000 8.9
------------- ------------- ------------ ----
Total Advertising $ 471,769,000 $ 446,547,000 $ 25,222,000 5.6
Circulation 116,912,000 114,189,000 2,723,000 2.4
Other revenue 41,370,000 39,589,000 1,781,000 4.5
Broadcasting 106,979,000 79,388,000 27,591,000 34.8
------------- ------------- ------------ ----
Total Revenue $ 737,030,000 $ 679,713,000 $ 57,317,000 8.4
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 3,725,010 3,710,301 14,709 0.4
National 406,424 410,480 (4,056) (1.0)
Classified 5,877,071 5,824,707 52,364 0.9
------------- ------------- ------------ ----
Total ROP 10,008,505 9,945,488 63,017 0.6
============= ============= ============ ====
Preprint Distribution
(in thousands) 1,094,536 1,097,891 (3,355) (0.3)
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,203,896 7,221,999 (18,103) (0.3)
Evening 1,202,382 1,233,739 (31,357) (2.5)
------------- ------------- ------------ ----
Total Daily 8,406,278 8,455,738 (49,460) (0.6)
============= ============= ============ ====
Sunday 6,845,621 7,035,722 (190,101) (2.7)
============= ============= ============ ====
Year-to-Date through October 31, 2004
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 1,696,190,000 $ 1,596,997,000 $ 99,193,000 6.2
National 648,430,000 598,327,000 50,103,000 8.4
Classified 1,748,232,000 1,562,259,000 185,973,000 11.9
-------------- -------------- ------------- ----
Total Advertising $ 4,092,852,000 $ 3,757,583,000 $ 335,269,000 8.9
Circulation 1,040,383,000 1,027,382,000 13,001,000 1.3
Other revenue 335,711,000 317,054,000 18,657,000 5.9
Broadcasting 697,786,000 609,964,000 87,822,000 14.4
-------------- -------------- ------------- ----
Total Revenue $ 6,166,732,000 $ 5,711,983,000 $ 454,749,000 8.0
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 31,049,986 30,970,233 79,753 0.3
National 3,470,600 3,344,025 126,575 3.8
Classified 51,231,090 50,097,509 1,133,581 2.3
-------------- -------------- ------------- ----
Total ROP 85,751,676 84,411,767 1,339,909 1.6
============== ============== ============= ====
Preprint Distribution
(in thousands) 9,293,068 9,025,945 267,123 3.0
============== ============== ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,106,118 7,084,945 21,173 0.3
Evening 1,212,054 1,241,218 (29,164) (2.3)
-------------- -------------- ------------- ----
Total Daily 8,318,172 8,326,163 (7,991) (0.1)
============== ============== ============= ====
Sunday 6,874,059 7,045,348 (171,289) (2.4)
============== ============== ============= ====
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 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. 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 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 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
September 2004Nielsen//NetRatings Home/Work Panel Combined
Unique Visitors Percentage Reach of
Per Month Internet Audience
Gannett Online 19,595,000 13.4%