Gannett Reports June Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the sixth period ended June 29, 2003 increased 3 percent. For comparison purposes, the continued increase in the exchange rate of Sterling year-over-year 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 increased 1 percent.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in June were up 5 percent compared with the same period in 2002 on a 2 percent increase in ROP volume and a 9 percent advance in preprint distribution. If the exchange rate had remained constant year-over-year, pro forma newspaper advertising revenues would have risen 3 percent.
Pro forma classified revenues advanced 7 percent in the June period on a 3 percent increase in ad volume. Employment revenues declined 3 percent from the same period last year. Classified real estate revenues advanced 16 percent, and automotive increased 6 percent. Overall, the company’s classified results from Newsquest were substantially stronger than its domestic results.
Pro forma local advertising revenues rose 4 percent in the June period on a 1 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., newspaper gains were achieved in the telecommunications, financial and home improvement categories while there was softness in department stores, consumer electronics, furniture and grocery ad spending.
Pro forma national advertising revenues increased 2 percent on a 15 percent increase in ad volume. National volume at the company’s local domestic newspapers rose 19 percent in the period compared with the same interval in 2002. At USA TODAY, advertising revenues were 1 percent lower on a 2 percent decrease in paid ad pages to 408 from 418. For the month, automotive, technology and advocacy advertising were strong but soft travel and retail advertising offset these gains. For the year-to-date, USA TODAY’s paid pages numbered 2,316 versus 2,414 last year while ad revenues were slightly ahead of last year.
Television revenues declined 4 percent in the period. Local revenues rose 4 percent while national revenues declined 14 percent. For comparison purposes, television revenues increased 16 percent in June of 2002.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for May from Nielsen//Net Ratings. In May, Gannett’s domestic Websites had over 13 million unique visitors reaching 10 percent of the Internet audience.
The pro forma advertising and circulation revenue statistics include the results of the SMG (Scottish Media Group) publishing business and Texas-New Mexico Newspapers Partnership as if they had been owned in both years. Ad linage for Newsquest 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 in excess of 400 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:
Gracia Martore
Senior Vice President and Chief Financial Officer
703-854-6918
gmartore@gannett.com
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
Period 6 (June 2, 2003 - June 29, 2003)
%
2003 2002 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 145,088,000 $ 139,148,000 $ 5,940,000 4
National 61,800,000 60,422,000 1,378,000 2
Classified 164,185,000 153,442,000 10,743,000 7
------------- ------------- ------------ ----
Total Advertising $ 371,073,000 $ 353,012,000 $ 18,061,000 5
Circulation 97,312,000 96,596,000 716,000 1
Other revenue 30,516,000 29,167,000 1,349,000 5
Television 57,339,000 59,593,000 (2,254,000) (4)
------------- ------------- ------------ ----
Total Revenue $ 556,240,000 $ 538,368,000 $ 17,872,000 3
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 2,955,146 2,985,018 (29,872) (1)
National 371,004 323,278 47,726 15
Classified 4,838,741 4,707,381 131,360 3
------------- ------------- ------------ ----
Total ROP 8,164,891 8,015,677 149,214 2
============= ============= ============ ====
Preprint Distribution
(in thousands) 845,085 778,603 66,482 9
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,815,904 6,911,328 (95,424) (1)
Evening 1,227,277 1,286,863 (59,586) (5)
------------- ------------- ------------ ----
Total Daily 8,043,181 8,198,191 (155,010) (2)
============= ============= ============ ====
Sunday 6,823,627 6,920,476 (96,849) (1)
============= ============= ============ ====
Year-to-Date through June 29, 2003
%
2003 2002 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 884,245,000 $ 853,029,000 $ 31,216,000 4
National 349,345,000 339,598,000 9,747,000 3
Classified 912,665,000 872,978,000 39,687,000 5
-------------- -------------- ------------- ----
Total Advertising $ 2,146,255,000 $ 2,065,605,000 $ 80,650,000 4
Circulation 613,914,000 609,161,000 4,753,000 1
Other revenue 183,546,000 169,575,000 13,971,000 8
Television 350,903,000 358,485,000 (7,582,000) (2)
-------------- -------------- ------------- ----
Total Revenue $ 3,294,618,000 $ 3,202,826,000 $ 91,792,000 3
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 18,300,949 18,587,748 (286,799) (2)
National 2,005,828 1,853,925 151,903 8
Classified 28,955,298 27,990,372 964,926 3
-------------- -------------- ------------- ----
Total ROP 49,262,075 48,432,045 830,030 2
============== ============== ============= ====
Preprint Distribution
(in thousands) 5,373,553 4,841,570 531,983 11
============== ============== ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,106,670 7,137,333 (30,663) (0)
Evening 1,276,116 1,313,629 (37,513) (3)
-------------- -------------- ------------- ----
Total Daily 8,382,786 8,450,962 (68,176) (1)
============== ============== ============= ====
Sunday 7,013,148 7,067,515 (54,367) (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 SMG Publishing (acquired in April 2003). 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.
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
2nd Quarter 2003 (March 31 - June 29, 2003)
%
2003 2002 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 462,667,000 $ 442,205,000 $ 20,462,000 5
National 183,522,000 177,000,000 6,522,000 4
Classified 469,225,000 452,641,000 16,584,000 4
-------------- -------------- ------------- ----
Total Advertising $ 1,115,414,000 $ 1,071,846,000 $ 43,568,000 4
Circulation 303,254,000 302,035,000 1,219,000 0
Other revenue 94,027,000 87,919,000 6,108,000 7
Television 192,727,000 191,299,000 1,428,000 1
-------------- -------------- ------------- ----
Total Revenue $ 1,705,422,000 $ 1,653,099,000 $ 52,323,000 3
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 9,603,710 9,686,458 (82,748) (1)
National 1,072,378 981,929 90,449 9
Classified 15,194,403 14,796,939 397,464 3
-------------- -------------- ------------- ----
Total ROP 25,870,491 25,465,326 405,165 2
============== ============== ============= ====
Preprint Distribution
(in thousands) 2,804,573 2,535,804 268,769 11
============== ============== ============= ====
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 SMG Publishing (acquired in April 2003). 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.
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Gannett Online Internet Audience May 2003Nielsen//NetRatings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 13,334,000 10.0%