Gannett Releases April Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the fourth period ended May 1, 2005 increased 2.3 percent, resulting from solid classified advertising demand in its newspaper segment. Broadcasting revenues trailed last year’s results due, in part, to significantly lower political ad spending. For comparison purposes, the increase in 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 1.8 percent.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in the fourth period were up 4.2 percent compared with the same period in 2004 on a 1.7 percent decline in ROP ad volume and a 4.6 percent increase in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have been
3.5 percent higher. Newspaper advertising category results reflect, in part, the Easter switch to March this year from April in 2004. As in the past, we recommend combining March and April results for comparison purposes.
Pro forma classified revenues advanced 8.4 percent in April on a slight decline in ROP ad volume. On a constant currency basis, pro forma classified revenues would have increased 7.2 percent. Classified employment and real estate revenues were up 13.1 percent and 9.1 percent, respectively, compared to the same period last year. Automotive revenues were 2.9 percent lower. On a constant currency basis, employment revenues would have increased 11.7 percent, real estate revenues would have advanced 7.8 percent while auto would have been 3.5 percent lower. Overall, the company’s classified results from its domestic community newspapers were better than Newsquest’s results.
Pro forma local advertising revenues, tempered by the absence of Easter in the period, increased
2.2 percent on a 3.2 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 the U.S., across all products, local ad revenue gains were achieved in the furniture, health, financial and telecommunications categories. However, the department stores, entertainment, restaurants and grocery categories lagged last year’s results. On a constant currency basis, pro forma local advertising would have advanced 1.8 percent.
Pro forma national advertising revenues were down 1.0 percent on an 8.4 percent decline in ad volume. National volume at the company’s local domestic newspapers declined 7.1 percent in the period compared with the same interval in 2004. USA WEEKEND, our weekly newspaper magazine, experienced higher national ad revenue in the period. While our revenue statistics include USA WEEKEND’s results, their ad volume is not included in the linage numbers. At USA TODAY, advertising revenues were down 3.5 percent on a 9.8 percent decline in paid ad pages to 434 from 482. USA TODAY’s year-to-date paid pages totaled 1,536 compared to 1,580 for the prior year while ad revenues increased 2.3 percent. For comparison purposes, USA TODAY’s ad revenues and pages were up 25.4 percent and 15.5 percent, respectively, in April 2004. For the fourth period, at USA TODAY, results for the entertainment, technology, financial and retail categories were strong while the travel, automotive and telecommunications categories declined versus last year’s results.
Pro forma broadcasting revenues, including Captivate, were 6.5 percent lower in the period. Local television revenues were down 1.0 percent and national revenues declined 18.4 percent. Based on results to date and current pacings for the second quarter, television revenues are lagging last year’s second quarter results 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 April from Nielsen//NetRatings. In April, Gannett’s domestic Websites had 20.2 million unique visitors reaching 13.9 percent of the Internet audience.
The pro forma advertising and circulation revenue statistics include the results for HomeTown Communications (acquired in late March 2005), Captivate (acquired in April 2004) and NurseWeek (acquired in February 2004). 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. Circulation volume and advertising linage statistics for HomeTown’s daily newspaper are not yet included.
Gannett Co., Inc. is a leading international news and information company that publishes 102 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns more than 800 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 4 (March 28, 2005 - May 1, 2005)
%
2005 2004 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 201,737,000 $197,414,000 $ 4,323,000 2.2
National 72,606,000 73,373,000 (767,000) (1.0)
Classified 196,379,000 181,137,000 15,242,000 8.4
------------- ------------- ------------ ----
Total Advertising $ 470,722,000 $ 451,924,000 $ 18,798,000 4.2
Circulation 116,798,000 115,128,000 1,670,000 1.5
Other revenue 39,003,000 38,411,000 592,000 1.5
Broadcasting 74,648,000 79,852,000 (5,204,000) (6.5)
------------- ------------- ------------ ----
Total Revenue $ 701,171,000 $ 685,315,000 $ 15,856,000 2.3
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 3,553,349 3,669,604 (116,255) (3.2)
National 363,444 396,642 (33,198) (8.4)
Classified 5,706,817 5,728,759 (21,942) (0.4)
------------- ------------- ------------ ----
Total ROP 9,623,610 9,795,005 (171,395) (1.7)
============= ============= ============ ====
Preprint Distribution
(in thousands) 1,099,320 1,050,897 48,423 4.6
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,093,262 7,252,758 (159,496) (2.2)
Evening 1,179,283 1,230,134 (50,851) (4.1)
------------- ------------- ------------ ----
Total Daily 8,272,545 8,482,892 (210,347) (2.5)
============= ============= ============ ====
Sunday 6,767,808 6,921,156 (153,348) (2.2)
============= ============= ============ ====
Year-to-Date through May 1, 2005
%
2005 2004 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 714,840,000 $ 681,215,000 $ 33,625,000 4.9
National 263,110,000 256,535,000 6,575,000 2.6
Classified 725,684,000 689,595,000 36,089,000 5.2
------------- ------------- ------------ ----
Total Advertising $1,703,634,000 $1,627,345,000 $ 76,289,000 4.7
Circulation 432,193,000 429,262,000 2,931,000 0.7
Other revenue 136,603,000 132,127,000 4,476,000 3.4
Television 239,205,000 251,969,000 (12,764,000) (5.1)
------------- ------------- ------------ ----
Total Revenue $2,511,635,000 $2,440,703,000 $ 70,932,000 2.9
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 12,265,553 12,409,357 (143,804) (1.2)
National 1,318,158 1,441,495 (123,337) (8.6)
Classified 19,886,523 20,113,489 (226,966) (1.1)
------------- ------------- ------------ ----
Total ROP 33,470,234 33,964,341 (494,107) (1.5)
============= ============= ============ ====
Preprint Distribution
(in thousands) 3,877,546 3,706,641 170,905 4.6
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,044,988 7,217,760 (172,772) (2.4)
Evening 1,185,795 1,233,972 (48,177) (3.9)
------------- ------------- ------------ ----
Total Daily 8,230,783 8,451,732 (220,949) (2.6)
============= ============= ============ ====
Sunday 6,776,579 6,983,998 (207,419) (3.0)
============= ============= ============ ====
Note: The operating results from the company’s newspapers participating in joint operating agencies, and which are accounted for under the equity method of accounting, are reported as a single amount in other operating revenues. Advertising linage statistics from these newspapers are not included above, however, circulation volume statistics for these newspapers are included above.
The above revenue amounts and statistics have been restated to include all companies presently owned, including HomeTown Communications (acquired in late March 2005), Captivate (acquired in April 2004) and NurseWeek (acquired in February 2004). 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. Circulation volume and advertising linage statistics for HomeTown’s daily newspaper are not yet included. 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.
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 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 April 2005Nielsen//NetRatings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 20,187,000 13.9%