Gannett Releases January Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the first period increased 1.7 percent, compared with the first period in 2006. 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 0.3 percent higher.
Pro forma newspaper advertising revenues in January were up 0.3 percent, compared with January in 2006. Pro forma assumes all properties presently owned were owned in both periods. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising would have been 1.3 percent lower.
Pro forma local advertising revenues were 0.2 percent higher in the first period. In the U.S., across all products, all major categories, excluding health and restaurants, lagged last year. Local advertising results in the U.S. for the first period in 2007 reflect the absence of the final week in December (which was included in the first period in 2006). That week is historically strong for local and preprint advertising. Preprint advertising demand for the same week was particularly high in the twelfth period in 2006. On a constant currency basis, pro forma local advertising would have been 0.8 percent lower.
Pro forma classified revenues were 2.5 percent higher in the period. On a constant currency basis, pro forma classified revenues would have been flat. Real estate revenues were up 10.3 percent; employment revenues were 6.0 percent higher while automotive revenues were 13.5 percent lower. If the exchange rate had remained constant year-over-year, real estate would have increased 7.4 percent, employment would have been 3.1 percent higher and automotive would have declined 15.3 percent. At our U.S. community newspapers, pro forma classified revenues were 6.3 percent lower for the first period reflecting declines of 2.1 percent in real estate revenues, 3.3 percent in employment revenues and 18.6 percent in automotive revenues. Classified revenues at Newsquest in the UK were up 19.4 percent, in pounds, as real estate and employment increased 36.5 percent and 21.7 percent, respectively while automotive was
2.1 percent lower. Newsquest’s positive results in the first period reflect, in part, the absence of the last week in December which is generally a very soft week in the UK.
Pro forma national advertising revenues for January were 4.8 percent lower. At our local domestic newspapers, national volume was down 13.2 percent in the period. At USA TODAY, advertising revenues were down 6.0 percent on a decline in paid ad pages to 310 from 326. For the first period, at USA TODAY, there was growth in the travel, advocacy, home and building, retail and restaurant categories while the technology, telecommunications, packaged goods and financial categories lagged results for the same period in 2006.
Pro forma broadcasting revenues, which include Captivate, were 1.9 percent higher for the first period. Television revenues increased 1.1 percent in the period. National revenues were 2.9 percent lower, while local revenues increased 0.9 percent. Based on current pacings, television revenues for the first quarter of 2007 would lag last year’s first quarter in the high single to very low double digits, reflecting primarily the absence of over $22 million of Olympic revenue that benefited last year’s first quarter.
Other revenue advanced 19.4 percent in the first period due primarily to a significant increase in commercial printing and another strong performance by PointRoll.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for January from Nielsen//Net Ratings. In
January, Gannett’s domestic Websites had approximately 23.2 million unique visitors reaching 14.8 percent of the Internet audience.
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 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 1 (January 1, 2007 - February 4, 2007)
%
2007 2006 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 173,102,000 $ 172,707,000 $ 395,000 0.2
National 66,590,000 69,970,000 (3,380,000) (4.8)
Classified 177,054,000 172,686,000 4,368,000 2.5
------------- ------------ ----------- ----
Total Advertising $ 416,746,000 $ 415,363,000 $ 1,383,000 0.3
============= ============ =========== ====
Circulation 117,379,000 115,867,000 1,512,000 1.3
Other revenue 41,849,000 35,046,000 6,803,000 19.4
Broadcasting 60,872,000 59,761,000 1,111,000 1.9
------------- ------------ ----------- ----
Total Revenue $ 636,846,000 $ 626,037,000 $ 10,809,000 1.7
============= ============ =========== ====
VOLUME:
Newspaper Inches:
Local 2,801,358 2,868,765 (67,407) (2.3)
National 304,366 347,255 (42,889) (12.4)
Classified 4,498,117 4,785,263 (287,146) (6.0)
------------- ------------ ----------- ----
Total ROP 7,603,841 8,001,283 (397,442) (5.0)
============= ============ =========== ====
Preprint Distribution
(in thousands) 935,800 1,041,549 (105,749) (10.2)
============= ============ =========== ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,906,908 6,939,358 (32,450) (0.5)
Evening 879,163 903,348 (24,185) (2.7)
------------- ------------ ----------- ----
Total Daily 7,786,071 7,842,706 (56,635) (0.7)
============= ============ =========== ====
Sunday 6,243,899 6,370,118 (126,219) (2.0)
============= ============ =========== ====
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 revenue and statistical data related to the former Gannett owned newspaper 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-for 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 and Clipper Magazine are not reflected above.
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Gannett Online Internet Audience January 2007Nielsen//Net Ratings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 23,245,000 14.8%