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 November 4, 2007 declined 6.8 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 down 7.9 percent.
Pro forma newspaper advertising revenues in the tenth period were 5.3 percent lower 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 declined 6.5 percent.
Pro forma local advertising revenues were 2.3 percent lower in October. In the U.S., across all products, all major categories except telecommunications lagged last year’s results. On a constant currency basis, local advertising would have declined 3.1 percent.
Pro forma classified revenues were down 9.7 percent in the tenth period. On a constant currency basis, pro forma classified revenues would have been 11.8 percent lower. Real estate revenues declined 13.5 percent, employment revenues were 10.4 percent lower, and automotive revenues were down 13.4 percent. If the exchange rate had remained constant year-over-year, the declines would have been 15.6 percent for real estate, 12.5 percent for employment and
15.0 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 down 15.6 percent in October reflecting declines of 23.6 percent in real estate revenues,
17.8 percent in employment revenues and 13.5 percent in automotive revenues. Classified revenues at our operations in the UK were 1.6 percent lower, in pounds. Increases of 3.0 percent in real estate, 0.6 percent in employment and 1.8 percent in other classified revenues were offset by a decline of 20.1 percent in automotive.
Pro forma national advertising revenues in October were down 2.3 percent. At USA TODAY, advertising revenues were down 6.1 percent on paid ad pages of 369 versus 419 last year. In the tenth period at USA TODAY, growth in the entertainment, technology, financial, retail, advocacy, pharmaceutical and home and building categories was offset by declines in the travel, automotive, telecommunications and real estate categories.
Pro forma broadcasting revenues, which include Captivate, declined 23.6 percent in the period. The decline was due to significantly lower politically related advertising demand that
positively impacted the same period in 2006. Excluding political advertising, net time sales revenue increased 9.6 percent in the period. Television revenues were down 24.5 percent in October as local and national revenues declined 11.0 percent and 41.7 percent, respectively. Online revenues in broadcasting were up 30.0 percent in the period.
Based on October results and pacings for November and December, television revenues for the fourth quarter of 2007 would lag last year’s fourth quarter in the very high teens. 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 October from Nielsen//Net Ratings. In October, Gannett’s domestic Web sites had 22.7 million unique visitors reaching approximately 14.3 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 10 (October 1, 2007 - November 4, 2007)
%
2007 2006 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 209,265,000 $ 214,249,000 $ (4,984,000) (2.3)
National 78,021,000 79,897,000 (1,876,000) (2.3)
Classified 173,791,000 192,548,000 (18,757,000) (9.7)
-------------- ------------- ------------- -----
Total Advertising $ 461,077,000 $ 486,694,000 $ (25,617,000) (5.3)
============== ============= ============= =====
Circulation 116,827,000 116,725,000 102,000 0.1
Other revenue 48,811,000 49,604,000 (793,000) (1.6)
Broadcasting 83,638,000 109,520,000 (25,882,000) (23.6)
-------------- ------------- ------------- -----
Total Revenue $ 710,353,000 $ 762,543,000 $ (52,190,000) (6.8)
============== ============= ============= =====
VOLUME:
Newspaper Inches:
Local 3,033,829 3,221,259 (187,430) (5.8)
National 306,053 299,626 6,427 2.1
Classified 4,480,994 5,112,728 (631,734) (12.4)
-------------- ------------- ------------- -----
Total ROP 7,820,876 8,633,613 (812,737) (9.4)
============== ============= ============= =====
Preprint Distribution
(in thousands) 1,057,401 1,097,139 (39,738) (3.6)
============== ============= ============= =====
NET PAID CIRCULATION:
Morning (w/USAT) 6,788,623 6,928,053 (139,430) (2.0)
Evening 847,836 885,927 (38,091) (4.3)
-------------- ------------- ------------- -----
Total Daily 7,636,459 7,813,980 (177,521) (2.3)
============== ============= ============= =====
Sunday 5,763,579 6,049,124 (285,545) (4.7)
============== ============= ============= =====
Year-to-Date through November 4, 2007
%
2007 2006 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 1,788,595,000 $ 1,833,408,000 $ (44,813,000) (2.4)
National 629,211,000 653,211,000 (24,000,000) (3.7)
Classified 1,734,196,000 1,855,635,000 (121,439,000) (6.5)
-------------- ------------- ------------- -----
Total Advertising $ 4,152,002,000 $ 4,342,254,000 $ (190,252,000) (4.4)
============== ============= ============= =====
Circulation 1,056,010,000 1,058,406,000 (2,396,000) (0.2)
Other revenue 424,411,000 398,520,000 25,891,000 6.5
Broadcasting 660,903,000 723,443,000 (62,540,000) (8.6)
-------------- ------------- ------------- -----
Total Revenue $ 6,293,326,000 $ 6,522,623,000 $ (229,297,000) (3.5)
============== ============= ============= =====
VOLUME:
Newspaper Inches:
Local 25,848,196 27,219,146 (1,370,950) (5.0)
National 2,467,604 2,683,895 (216,291) (8.1)
Classified 41,826,985 45,882,563 (4,055,578) (8.8)
-------------- ------------- ------------- -----
Total ROP 70,142,785 75,785,604 (5,642,819) (7.4)
============== ============= ============= =====
Preprint Distribution
(in thousands) 9,284,034 9,568,394 (284,360) (3.0)
============== ============= ============= =====
NET PAID CIRCULATION:
Morning (w/USAT) 6,710,652 6,819,898 (109,246) (1.6)
Evening 859,163 885,959 (26,796) (3.0)
-------------- ------------- ------------- -----
Total Daily 7,569,815 7,705,857 (136,042) (1.8)
============== ============= ============= =====
Sunday 5,845,472 6,073,043 (227,571) (3.7)
============== ============= ============= =====
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.
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Gannett Online Internet Audience October 2007 Nielsen//Net Ratings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 22,748,000 14.3%