Gannett Releases August Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the eighth period ended August 27, 2006 increased 0.5 percent resulting from higher revenues in its broadcasting segment and an increase in local advertising in its newspaper segment. For comparison purposes, the exchange rate of Sterling year-over-year 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 0.3 percent lower for the period.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in August were 0.9 percent lower compared with the eighth period in 2005 on declines of 1.4 percent in ROP volume and 2.0 percent in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have been down 1.8 percent.
Pro forma local advertising revenues were up 1.7 percent on a 0.5 percent increase in ROP ad volume in August. 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 health, restaurants and home improvement categories while the department stores, entertainment, grocery, financial and telecommunications categories lagged last year’s comparable period. On a constant currency basis, pro forma local advertising would have been 1.2 percent higher.
Pro forma classified revenues were 3.2 percent lower in the eighth period on a 1.9 percent decline in ROP ad volume. On a constant currency basis, pro forma classified revenues would have been down 4.7 percent for August. Real estate revenues increased 8.9 percent while employment and automotive revenues decreased 6.2 percent and 13.3 percent, respectively. On a constant currency basis, real estate would have been 7.2 percent higher, employment would have been down 7.5 percent and automotive would have been 14.6 percent lower. Classified results in our domestic community newspapers were better than in the UK. In the U.S., pro forma classified revenues were down 2.4 percent in the eighth period comprised of a 9.5 percent increase in real estate revenues while employment and automotive revenues were 6.7 percent and 11.5 percent lower, respectively.
Pro forma national advertising revenues in August were 1.0 percent lower on a 10.5 percent decline in ad volume. National volume at the company’s local domestic newspapers was
11.2 percent lower in the period. At USA TODAY, advertising revenues were up 0.8 percent on a decline in paid ad pages to 239 from 250. For the eighth period, at USA TODAY, the travel, financial, retail, packaged goods, real estate, advocacy and credit card categories were positive while the entertainment, technology, automotive and telecommunications categories declined compared to Period 8 in 2005.
Pro forma broadcasting revenues, which include Captivate, were 11.2 percent higher in the period due in part to higher politically related ad demand and growth in online revenue. Television revenues were 11.3 percent higher for the eighth period as local revenues were up 2.4 percent and national revenues advanced 24.2 percent. Based on results to date and current pacings for the remainder of the quarter, television revenues for the third quarter of 2006 would be above last year’s comparable period in the mid to high-single digits.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for August from Nielsen//Net Ratings. In August, Gannett’s domestic Web sites had approximately 23.3 million unique visitors reaching 15.0 percent of the Internet audience.
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) and Hometown Communications (acquired March 31, 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 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 more than 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 8 (July 31, 2006 - August 27, 2006)
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 165,477,000 $ 162,711,000 $ 2,766,000 1.7
National 55,452,000 56,012,000 (560,000) (1.0)
Classified 169,702,000 175,399,000 (5,697,000) (3.2)
------------- ------------- ----------- ----
Total Advertising $ 390,631,000 $ 394,122,000 $ (3,491,000) (0.9)
============= ============= =========== ====
Circulation 97,576,000 99,436,000 (1,860,000) (1.9)
Other revenue 37,100,000 34,888,000 2,212,000 6.3
Broadcasting 60,355,000 54,289,000 6,066,000 11.2
------------- ------------- ----------- ----
Total Revenue $ 585,662,000 $ 582,735,000 $ 2,927,000 0.5
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 2,482,520 2,469,899 12,621 0.5
National 247,084 276,107 (29,023) (10.5)
Classified 4,382,728 4,466,321 (83,593) (1.9)
------------- ------------- ----------- ----
Total ROP 7,112,332 7,212,327 (99,995) (1.4)
============= ============= =========== ====
Preprint Distribution
(in thousands) 904,544 923,195 (18,651) (2.0)
============= ============= =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,787,508 6,914,741 (127,233) (1.8)
Evening 864,490 891,284 (26,794) (3.0)
------------- ------------- ----------- ----
Total Daily 7,651,998 7,806,025 (154,027) (2.0)
============= ============= =========== ====
Sunday 6,165,103 6,333,077 (167,974) (2.7)
============= ============= =========== ====
Year-to-Date through August 27, 2006
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 1,458,648,000 $ 1,444,598,000 $ 14,050,000 1.0
National 542,872,000 548,120,000 (5,248,000) (1.0)
Classified 1,474,371,000 1,503,719,000 (29,348,000) (2.0)
------------- ------------- ----------- ----
Total Advertising $ 3,475,891,000 $ 3,496,437,000 $ (20,546,000) (0.6)
============= ============= =========== ====
Circulation 856,763,000 879,843,000 (23,080,000) (2.6)
Other revenue 310,562,000 292,406,000 18,156,000 6.2
Broadcasting 542,742,000 506,591,000 36,151,000 7.1
------------- ------------- ----------- ----
Total Revenue $ 5,185,958,000 $ 5,175,277,000 $ 10,681,000 0.2
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 22,424,930 22,512,124 (87,194) (0.4)
National 2,551,721 2,704,279 (152,558) (5.6)
Classified 37,448,532 37,974,219 (525,687) (1.4)
------------- ------------- ----------- ----
Total ROP 62,425,183 63,190,622 (765,439) (1.2)
============= ============= =========== ====
Preprint Distribution
(in thousands) 7,795,680 7,957,670 (161,990) (2.0)
============= ============= =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,973,346 7,090,082 (116,736) (1.6)
Evening 887,114 924,161 (37,047) (4.0)
------------- ------------- ----------- ----
Total Daily 7,860,460 8,014,243 (153,783) (1.9)
============= ============= =========== ====
Sunday 6,284,863 6,431,425 (146,562) (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 August 29, 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 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 Nursing Spectrum/NurseWeek and Clipper Magazine are not reflected above.
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Gannett Online Internet Audience August 2006Nielsen//Net Ratings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 23,319,000 15.0%