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 27, 2005 declined 2.1 percent, resulting from lower ad demand at its UK properties and its broadcasting segment mitigated, in part, by higher classified advertising demand at its domestic community newspapers. For comparison purposes, there was a decline in the exchange rate of Sterling year-over-year in the period. If the exchange rate had remained constant year-over-year, total pro forma operating revenues would have declined 1.4 percent.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in November declined 3.3 percent compared with the eleventh period in 2004 on a 4.2 percent decline in ROP volume and a 2.0 percent increase in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have declined 2.4 percent.
Pro forma local advertising revenues were 2.7 percent lower on a 3.0 percent decline in ROP ad volume in November. 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 and home improvement categories while the department stores, furniture, entertainment, grocery, restaurants and telecommunications categories lagged last year’s comparable period results. On a constant currency basis, local advertising revenues would have declined 2.3 percent.
Pro forma classified revenues were 1.8 percent lower in the eleventh period on a 4.5 percent decline in ROP ad volume. On a constant currency basis, pro forma classified revenues would have been flat for November. Real estate revenues increased 6.8 percent, employment revenues were down 1.6 percent, while automotive revenues were 15.5 percent lower compared to last year’s eleventh period. On a constant currency basis, real estate revenues would have been 8.8 percent higher, employment revenues would have advanced slightly and automotive would have been 14.3 percent lower. Overall, the company’s domestic classified results were better than its UK results. In the U.S., employment revenues increased 12.7 percent and real estate revenues were up 13.7 percent in the eleventh period while automotive declined 13.6 percent.
Pro forma national advertising revenues in November declined 8.3 percent on a 12.3 percent decline in ad volume. National volume at the company’s local domestic newspapers was down
14.0 percent in the period. At USA TODAY, advertising revenues were 7.7 percent lower on a
16.4 percent decline in paid ad pages to 345 from 412. For the eleventh period, at USA TODAY, the entertainment, automotive, technology, retail and financial categories were positive while the travel, telecommunications, packaged goods and advocacy categories lagged results for the same period in 2004. For the year-to-date, USA TODAY’s advertising revenues were virtually flat compared to last year while paid advertising pages totaled 4,071 versus 4,329 last year.
Pro forma broadcasting revenues, which include Captivate, were 3.2 percent lower in the period. Television revenues declined 3.4 percent compared to the eleventh period in 2004. Local revenues were up 4.3 percent while national revenues were 14.5 percent lower in November of 2005. Based on quarter-to-date results and pacings for December, television revenues for the fourth quarter of 2005 would be below last year’s comparable period in the mid-teens.
On December 1, 2005, Gannett Co., Inc. and MediaNews Group, Inc. announced an agreement to expand their Texas-New Mexico Newspapers Partnership to include four newspapers in Pennsylvania. MediaNews Group will become the managing partner. Gannett will contribute the Public Opinion of Chambersburg, PA to the partnership. MediaNews Group will contribute the York Daily Record and York Sunday News, the Lebanon Daily News of Lebanon and the Evening Sun of Hanover. The York Daily Record and York Sunday News will continue to operate under the terms of a JOA which includes the York Dispatch.
On August 3, 2005, the company and MediaNews Group announced the reorganization of the Detroit Newspaper Agency. As part of the transaction, Knight Ridder sold its newspaper interests in Detroit to Gannett and MediaNews Group and the two newspaper publishers formed the Detroit Newspaper Partnership, L.P. MediaNews Group acquired The Detroit News from Gannett and Gannett acquired the Detroit Free Press. Detroit’s results have been fully consolidated in the financial statements of Gannett along with a minority interest charge for MediaNews Group’s interest.
In a separate transaction on August 29th, the company completed an exchange of assets with Knight Ridder, Inc. in which Knight Ridder received from Gannett The (Boise) Idaho Statesman, and two newspapers in the state of Washington: The (Olympia) Olympian, and The Bellingham Herald. In
return, Gannett received the Tallahassee (FL) Democrat and cash consideration. Therefore, all previously reported results for the former Gannett properties have been reclassified to income from
discontinued operations. In addition, a gain resulting from the exchange has been included in discontinued operations.
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), HomeTown Communications (acquired in late March 2005), Captivate (acquired in April 2004) and NurseWeek (acquired in February 2004). 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 99 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns more than 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
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
Period 11 (Oct. 31 - Nov. 27, 2005)
%
2005 2004 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 208,309,000 $ 214,174,000 $ (5,865,000) (2.7)
National 70,385,000 76,734,000 (6,349,000) (8.3)
Classified 166,919,000 170,008,000 (3,089,000) (1.8)
--------------- ------------ ------------- ----
Total Advertising $ 445,613,000 $ 460,916,000 $ (15,303,000) (3.3)
Circulation 101,466,000 104,853,000 (3,387,000) (3.2)
Other revenue 41,863,000 35,250,000 6,613,000 18.8
Broadcasting 67,648,000 69,883,000 (2,235,000) (3.2)
--------------- ------------- ------------- ----
Total Revenue $ 656,590,000 $ 670,902,000 $ (14,312,000) (2.1)
=============== ============= ============= ====
VOLUME:
Newspaper Inches:
Local 3,271,080 3,370,753 (99,673) (3.0)
National 360,902 411,692 (53,790) (12.3)
Classified 4,335,824 4,538,060 (202,236) (4.5)
--------------- ------------- ------------- ----
Total ROP 7,967,806 8,320,505 (352,699) (4.2)
=============== ============= ============= ====
Preprint Distribution
(in thousands) 1,294,936 1,270,047 24,889 2.0
=============== ============= ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,293,263 7,459,967 (166,704) (2.2)
Evening 920,622 959,571 (38,949) (4.1)
--------------- ------------- ------------- ----
Total Daily 8,213,885 8,419,538 (205,653) (2.4)
=============== ============= ============= ====
Sunday 6,629,132 6,809,951 (180,819) (2.7)
=============== ============= ============= ====
Year-to-Date through Nov. 27, 2005
%
2005 2004 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 2,100,062,000 $ 2,060,620,000 $ 39,442,000 1.9
National 781,676,000 778,848,000 2,828,000 0.4
Classified 2,094,665,000 2,049,361,000 45,304,000 2.2
--------------- ------------- ------------- ----
Total Advertising $ 4,976,403,000 $ 4,888,829,000 $ 87,574,000 1.8
Circulation 1,223,208,000 1,226,867,000 (3,659,000) (0.3)
Other revenue 415,473,000 375,588,000 39,885,000 10.6
Television 677,051,000 767,668,000 (90,617,000) (11.8)
--------------- ------------- ------------- ----
Total Revenue $ 7,292,135,000 $ 7,258,952,000 $ 33,183,000 0.5
=============== ============= ============= ====
VOLUME:
Newspaper Inches:
Local 33,542,165 34,318,228 (776,063) (2.3)
National 3,856,741 4,058,945 (202,204) (5.0)
Classified 54,248,340 55,327,471 (1,079,131) (2.0)
--------------- ------------- ------------- ----
Total ROP 91,647,246 93,704,644 (2,057,398) (2.2)
=============== ============= ============= ====
Preprint Distribution
(in thousands) 11,496,615 11,293,168 203,447 1.8
=============== ============= ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,243,840 7,417,847 (174,007) (2.3)
Evening 926,167 966,613 (40,446) (4.2)
--------------- ------------- ------------- ----
Total Daily 8,170,007 8,384,460 (214,453) (2.6)
=============== ============= ============= ====
Sunday 6,591,389 6,800,360 (208,971) (3.1)
=============== ============= ============= ====
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), HomeTown Communications (acquired in late March 2005), Captivate (acquired in April 2004) and NurseWeek (acquired in February 2004). 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.
Captivate is a national news and entertainment network that delivers programming and full motion video advertising through wireless digital video screens in elevators of premier office towers. Captivate is included above in Broadcasting revenue. NurseWeek is a multimedia company with print publications focused on the recruitment, recognition and education of nurses. 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.