Gannett Releases February Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the second period ended February 26, 2006 were up 0.4 percent reflecting higher ad demand in broadcasting and gains in classified advertising at its domestic community newspapers partially offset by lower ad demand at its UK properties. For comparison purposes, 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 1.5 percent.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in February decreased 2.8 percent compared with the same period in 2005 on declines of 3.4 percent in ROP volume and 2.7 percent in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have been 1.6 percent lower.
Pro forma local advertising revenues were 3.3 percent lower on a 3.4 percent decline in ROP 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 February. In the U.S., local ad revenue gains were achieved in the entertainment, health and financial categories. However, the department stores, furniture, consumer electronics, grocery and telecommunications categories declined compared to the same period a year ago. On a constant currency basis, pro forma local advertising would have been down
2.7 percent.
Pro forma classified revenues decreased 2.4 percent in the second period on a 3.1 percent decline in ROP ad volume. On a constant currency basis, pro forma classified revenues would have been 0.4 percent lower. Classified real estate revenues rose 12.9 percent from the same period last year. Classified employment and automotive revenues were 4.8 percent and 18.8 percent lower, respectively. On a constant currency basis, real estate revenues would have been up 15.6 percent, employment revenues would have been down
2.5 percent and automotive revenues would have been 17.4 percent lower. Overall, the company’s domestic classified results were significantly better than its UK results. In the U.S., pro forma classified revenues increased 3.6 percent reflecting a 22.4 percent increase in real estate revenues and a 6.6 percent increase in employment revenues while automotive revenues were 16.6 percent lower.
Pro forma national advertising revenues decreased 2.6 percent on a 7.3 percent decrease in ad volume. National volume at the company’s local domestic newspapers was 7.5 percent lower in the period compared with the same interval in 2005. At USA TODAY, advertising revenues declined 1.3 percent on a
3.9 percent decline in paid ad pages to 348 from 362. For the second period, at USA TODAY, results from the automotive, technology, telecommunications and advocacy categories were strong while the entertainment, travel, financial, retail and packaged goods categories lagged last year’s results. USA TODAY’s year-to-date paid pages totaled 676 compared to 728 for the prior year while ad revenues were
1.9 percent lower.
Pro forma broadcasting revenues were up 32.6 percent in the second period as our NBC affiliates benefited from Winter Olympics related advertising. Compared to the same period in 2005, local television revenues were up 28.9 percent while national revenues were 45.5 percent higher. Based on results to date and current pacings for March, television revenues are ahead of last year’s first quarter results in the high single digits.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for February from Nielson//Net Ratings. In February, Gannett’s domestic Websites had approximately 22.8 million unique visitors reaching over 15 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 in late March 2005). The pro forma other revenue statistics include the results for PointRoll, Inc. (acquired in June 2005). Ad linage for Newsquest, Clipper and 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) has been excluded from all periods presented.
Gannett Co., Inc. is a leading international news and information company that publishes 91 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 21 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 2 (Jan. 30, 2006 - Feb. 26 2006)
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 164,621,000 $ 170,270,000 $ (5,649,000) (3.3)
National 63,487,000 65,189,000 (1,702,000) (2.6)
Classified 172,690,000 177,005,000 (4,315,000) (2.4)
------------- ------------- ----------- ----
Total Advertising $ 400,798,000 $ 412,464,000 $ (11,666,000) (2.8)
============= ============= =========== ====
Circulation 101,031,000 103,664,000 (2,633,000) (2.5)
Other revenue 34,154,000 34,353,000 (199,000) (0.6)
Broadcasting 69,487,000 52,407,000 17,080,000 32.6
------------- ------------- ----------- ----
Total Revenue $ 605,470,000 $ 602,888,000 $ 2,582,000 0.4
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 2,549,059 2,639,531 (90,472) (3.4)
National 302,211 325,844 (23,633) (7.3)
Classified 4,166,522 4,298,436 (131,914) (3.1)
------------- ------------- ----------- ----
Total ROP 7,017,792 7,263,811 (246,019) (3.4)
============= ============= =========== ====
Preprint Distribution
(in thousands) 906,732 931,876 (25,144) (2.7)
============= ============= =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,131,200 7,223,722 (92,522) (1.3)
Evening 910,177 945,291 (35,114) (3.7)
------------- ------------- ----------- ----
Total Daily 8,041,377 8,169,013 (127,636) (1.6)
============= ============= =========== ====
Sunday 6,429,923 6,591,785 (161,862) (2.5)
============= ============= =========== ====
Year-to-Date through Feb. 26, 2006
%
2006 2005 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 338,577,000 $ 342,871,000 $ (4,294,000) (1.3)
National 132,897,000 134,285,000 (1,388,000) (1.0)
Classified 345,101,000 353,397,000 (8,296,000) (2.3)
------------- ------------- ----------- ----
Total Advertising $ 816,575,000 $ 830,553,000 $ (13,978,000) (1.7)
============= ============= =========== ====
Circulation 217,070,000 223,347,000 (6,277,000) (2.8)
Other revenue 69,335,000 67,230,000 2,105,000 3.1
Television 124,803,000 108,062,000 16,741,000 15.5
------------- ------------- ----------- ----
Total Revenue $1,227,783,000 $ 1,229,192,000 $ (1,409,000) (0.1)
============= ============= =========== ====
VOLUME:
Newspaper Inches:
Local 5,436,025 5,536,396 (100,371) (1.8)
National 650,517 672,111 (21,594) (3.2)
Classified 8,974,458 9,207,587 (233,129) (2.5)
------------- ------------- ----------- ----
Total ROP 15,061,000 15,416,094 (355,094) (2.3)
============= ============= =========== ====
Preprint Distribution
(in thousands) 1,948,367 1,951,835 (3,468) (0.2)
============= ============= =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,027,283 7,101,734 (74,451) (1.0)
Evening 906,787 945,045 (38,258) (4.0)
------------- ------------- ----------- ----
Total Daily 7,934,070 8,046,779 (112,709) (1.4)
============= ============= =========== ====
Sunday 6,408,765 6,555,695 (146,930) (2.2)
============= ============= =========== ====
Note: The above revenue amounts and statistics have been restated to
include all companies presently owned, including 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. The Tallahassee (FL) Democrat is published in
the morning and has an average daily paid circulation of 52,000
(Sunday – 68,000). 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) 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 NurseWeek and Clipper Magazine are not reflected
above.
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Gannett Online Internet Audience February 2006Nielsen//NetRatings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 22,781,000 15.1%