Gannett Releases July Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the seventh period ended July 30, 2006 increased 1.2 percent resulting from growth in advertising demand at its domestic community newspapers and broadcasting segment offset partially by soft ad demand at its UK properties. 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 0.6 percent higher for the period.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in July increased 0.5 percent compared with the seventh period in 2005 on a slight decrease in ROP volume and a 1.3 percent decrease in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have been slightly lower.
Pro forma local advertising revenues were up 1.8 percent on a 0.9 percent increase in ROP ad volume in July. 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, financial, restaurants and home improvement categories while the department stores, furniture, consumer electronics, entertainment, and telecommunications categories lagged last year’s comparable period. On a constant currency basis, pro forma local advertising would have increased 1.4 percent.
Pro forma classified revenues were 1.1 percent lower in the seventh period on a 0.3 percent decrease in ROP ad volume. On a constant currency basis, pro forma classified revenues would have been 2.2 percent lower for July. Real estate revenues increased 10.5 percent while employment and automotive revenues declined 5.4 percent and 9.7 percent, respectively. On a constant currency basis, real estate would have been 9.2 percent higher, employment would have been down 6.4 percent and automotive would have been 10.6 percent lower. Classified results in our domestic community newspapers were better than in the UK. In the U.S., pro forma classified revenues were up 0.6 percent in the seventh period comprised of a 12.1 percent increase in real estate revenues while employment and automotive revenues were 3.8 percent and 7.1 percent lower, respectively.
Pro forma national advertising revenues in July were 1.7 percent higher on a 9.1 percent decline in ad volume. National volume at the company’s local domestic newspapers was 9.6 percent lower in the period. At USA TODAY, advertising revenues increased 2.7 percent on a decline in paid ad pages to 338 from 355. For the seventh period, at USA TODAY, the technology, travel, home and building, telecommunications, financial, retail, advocacy and real estate categories were positive while the automotive, entertainment and packaged goods categories declined compared to Period 7 in 2005.
Pro forma broadcasting revenues, which include Captivate, increased 8.3 percent in the period due in part to higher politically related ad demand. Television revenues were 9.0 percent higher for the seventh period. Local revenues increased 7.1 percent while national revenues were 10.8 percent higher. Based on July’s results and current pacings for the remainder of the quarter, television revenues for the third quarter of 2006 would be above last year’s comparative period in the mid-single digits.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for July from Nielsen//Net Ratings. In July, Gannett’s domestic Web sites had approximately 21.6 million unique visitors reaching 13.9 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). Ad linage for Newsquest, Clipper and Nursing Spectrum/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. 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 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:
Jeff Heinz
Director, Investor Relations
703-854-6917
jheinz@gannett.com
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
Period 7 (June 26, 2006 - July 30, 2006)
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 184,700,000 $ 181,456,000 $ 3,244,000 1.8
National 66,731,000 65,640,000 1,091,000 1.7
Classified 191,615,000 193,771,000 (2,156,000) (1.1)
------------- ------------- ----------- ----
Total Advertising $ 443,046,000 $ 440,867,000 $ 2,179,000 0.5
============= ============= =========== ====
Circulation 114,423,000 116,632,000 (2,209,000) (1.9)
Other revenue 40,269,000 37,678,000 2,591,000 6.9
Broadcasting 65,236,000 60,223,000 5,013,000 8.3
------------- ------------- ----------- ----
Total Revenue $ 662,974,000 $ 655,400,000 $ 7,574,000 1.2
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 2,989,706 2,964,143 25,563 0.9
National 314,173 345,759 (31,586) (9.1)
Classified 5,369,724 5,384,998 (15,274) (0.3)
------------- ------------- ----------- ----
Total ROP 8,673,603 8,694,900 (21,297) (0.2)
============= ============= =========== ====
Preprint Distribution
(in thousands) 976,791 989,533 (12,742) (1.3)
============= ============= =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,724,318 6,857,986 (133,668) (1.9)
Evening 857,894 895,053 (37,159) (4.2)
------------- ------------- ----------- ----
Total Daily 7,582,212 7,753,039 (170,827) (2.2)
============= ============= =========== ====
Sunday 6,092,777 6,225,571 (132,794) (2.1)
============= ============= =========== ====
Year-to-Date through July 30, 2006
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 1,293,168,000 $ 1,281,935,000 $ 11,233,000 0.9
National 487,420,000 492,134,000 (4,714,000) (1.0)
Classified 1,304,672,000 1,328,247,000 (23,575,000) (1.8)
------------- ------------- ----------- ----
Total Advertising $ 3,085,260,000 $ 3,102,316,000 $ (17,056,000) (0.5)
============= ============= =========== ====
Circulation 759,187,000 780,407,000 (21,220,000) (2.7)
Other revenue 273,453,000 257,518,000 15,935,000 6.2
Broadcasting 463,052,000 432,462,000 30,590,000 7.1
------------- ------------- ----------- ----
Total Revenue $ 4,580,952,000 $ 4,572,703,000 $ 8,249,000 0.2
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 19,942,410 20,042,225 (99,815) (0.5)
National 2,304,637 2,428,172 (123,535) (5.1)
Classified 33,065,804 33,507,898 (442,094) (1.3)
------------- ------------- ----------- ----
Total ROP 55,312,851 55,978,295 (665,444) (1.2)
============= ============= =========== ====
Preprint Distribution
(in thousands) 6,889,632 7,033,668 (144,036) (2.0)
============= ============= =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,000,029 7,115,364 (115,335) (1.6)
Evening 890,186 928,767 (38,581) (4.2)
------------- ------------- ----------- ----
Total Daily 7,890,215 8,044,131 (153,916) (1.9)
============= ============= =========== ====
Sunday 6,301,884 6,445,668 (143,784) (2.2)
============= ============= =========== ====
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), 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.
--------------------------------------------------------------------------
Gannett Online Internet Audience July 2006Nielsen//Net Ratings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 21,584,000 13.9%