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 November 26, 2006 increased 3.5 percent driven by revenue growth in both its newspaper and broadcasting segments. 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 2.3 percent higher for the period.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in the eleventh period were 1.6 percent higher compared with November 2005 on a decline of 2.3 percent in ROP volume and 1.8 percent lower preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have been up slightly.
Pro forma local advertising revenues were 1.2 percent higher on a slight decline in ROP ad volume in November. In the U.S., across all products, local ad revenue gains were achieved in the health and office supplies categories while the department stores, consumer electronics, grocery and telecommunications categories lagged last year’s comparable period. On a constant currency basis, pro forma local advertising would have been 0.5 percent higher.
Pro forma classified revenues were 2.8 percent lower in the eleventh period on a 3.8 percent decline in ROP ad volume. On a constant currency basis, pro forma classified revenues would have been 5.1 percent lower for November. Real estate revenues were up 1.6 percent while employment revenues were 4.8 percent lower and automotive revenues declined 11.7 percent. On a constant currency basis, real estate would have been down 1.0 percent, employment would have been 7.0 percent lower and automotive would have declined 13.4 percent. In the U.S., at our community newspapers, pro forma classified revenues were 5.5 percent lower in the eleventh period comprised of declines of 2.5 percent in real estate revenues, 8.5 percent in employment revenues and 12.8 percent in automotive revenues.
Pro forma national advertising revenues in November increased 12.9 percent on a 2.2 percent decline in ad volume. National volume at the company’s local domestic newspapers was 5.9 percent lower in the period. At USA TODAY, advertising revenues were 20.l percent higher on a 13.6 percent increase in paid ad pages to 392 from 345.
For the eleventh period, at USA TODAY, there was strong growth in the entertainment, technology, retail, travel, pharmaceutical, advocacy, telecommunications and credit card categories while the automotive and financial categories lagged results for the same period in 2005.
Pro forma broadcasting revenues, which include Captivate, increased 20.0 percent in the period driven by strong politically related ad demand and online growth. Television revenues were 18.5 percent higher for the eleventh period. National revenues were 48.0 percent higher while local revenues were up 1.4 percent. Based on quarter-to-date results and pacings for December, television revenues for the fourth quarter of 2006 would be ahead of last year’s comparable period in the mid-teens.
The pro forma advertising and circulation revenue statistics include the results for Exchange & Mart and Auto Exchange (acquired in September 2005), the Tallahassee Democrat (acquired in August 2005), 100 percent of the Detroit Newspaper Partnership (established in August 2005), Mint Magazine (acquired in July 2005) and Hometown Communications (acquired in March 2005). The pro forma other revenue statistics include the results for PointRoll, Inc. (acquired in June 2005). 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 (formerly Nursing Spectrum) 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) as well as the Muskogee (OK) Phoenix, which was contributed to the Gannett Foundation in April 2006, has been excluded from all periods presented.
Gannett Co., Inc. is a leading international news and information company that publishes 90 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 17 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 (October 30, 2006 - November 26, 2006)
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 206,419,000 $ 203,908,000 $ 2,511,000 1.2
National 79,628,000 70,532,000 9,096,000 12.9
Classified 159,762,000 164,331,000 (4,569,000) (2.8)
------------- ------------- ----------- ----
Total Advertising $ 445,809,000 $ 438,771,000 $ 7,038,000 1.6
============= ============= =========== ====
Circulation 99,773,000 100,074,000 (301,000) (0.3)
Other revenue 43,656,000 41,957,000 1,699,000 4.0
Broadcasting 86,604,000 72,145,000 14,459,000 20.0
------------- ------------- ----------- ----
Total Revenue $ 675,842,000 $ 652,947,000 $ 22,895,000 3.5
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 3,075,589 3,086,382 (10,793) (0.3)
National 334,192 341,711 (7,519) (2.2)
Classified 3,987,436 4,145,827 (158,391) (3.8)
------------- ------------- ----------- ----
Total ROP 7,397,217 7,573,920 (176,703) (2.3)
============= ============= =========== ====
Preprint Distribution
(in thousands) 1,216,307 1,239,172 (22,865) (1.8)
============= ============= =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,066,394 7,159,264 (92,870) (1.3)
Evening 886,842 914,705 (27,863) (3.0)
------------- ------------- ----------- ----
Total Daily 7,953,236 8,073,969 (120,733) (1.5)
============= ============= =========== ====
Sunday 6,307,570 6,465,467 (157,897) (2.4)
============= ============= =========== ====
Year-to-Date through November 26, 2006
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 2,071,724,000 $ 2,053,632,000 $ 18,092,000 0.9
National 775,419,000 785,057,000 (9,638,000) (1.2)
Classified 2,017,088,000 2,063,226,000 (46,138,000) (2.2)
------------- ------------- ----------- ----
Total Advertising $ 4,864,231,000 $ 4,901,915,000 $ (37,684,000) (0.8)
============= ============= =========== ====
Circulation 1,180,546,000 1,207,379,000 (26,833,000) (2.2)
Other revenue 448,566,000 422,723,000 25,843,000 6.1
Broadcasting 810,047,000 726,598,000 83,449,000 11.5
------------- ------------- ----------- ----
Total Revenue $ 7,303,390,000 $ 7,258,615,000 $ 44,775,000 0.6
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 31,509,003 31,677,448 (168,445) (0.5)
National 3,529,979 3,840,065 (310,086) (8.1)
Classified 51,054,475 51,898,328 (843,853) (1.6)
------------- ------------- ----------- ----
Total ROP 86,093,457 87,415,841 (1,322,384) (1.5)
============= ============= =========== ====
Preprint Distribution
(in thousands) 11,095,522 11,345,262 (249,740) (2.2)
============= ============= =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,997,234 7,114,167 (116,933) (1.6)
Evening 886,603 920,507 (33,904) (3.7)
------------- ------------- ----------- ----
Total Daily 7,883,837 8,034,674 (150,837) (1.9)
============= ============= =========== ====
Sunday 6,277,554 6,427,162 (149,608) (2.3)
============= ============= =========== ====
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), WATL-TV in Atlanta (acquired in August 2006 and operated as a duopoly along with WXIA-TV), the Exchange & Mart and Auto Exchange (non-daily publications acquired in September 2005), the Tallahassee Democrat (acquired in late August 2005), 100% of the Detroit Newspaper Partnership (established August 2005), Mint Magazine (acquired in July 2005), PointRoll, Inc. (acquired in June 2005) and Hometown Communications (acquired in late March 2005). 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. 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. The revenue and statistical data related to the former Gannett owned newspapers in Bellingham (WA), Olympia (WA) and Boise (ID) as well as the Muskogee (OK) Phoenix which was contributed to the Gannett Foundation in April 2006, 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 nearly 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 Gannett Healthcare Group (formerly Nursing Spectrum) and Clipper Magazine are not reflected above.