Gannett Releases October Statistical Report
McLEAN, VA – Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the tenth period ended November 2, 2003 were almost even with the same period last year. For comparison purposes, the continued increase in the exchange rate of Sterling year-over-year affected results for the company’s U.K. operations. If the exchange rate had remained constant year-over-year, total pro forma operating revenues would have declined 1 percent, in part reflecting substantially diminished political advertising at our television stations.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in October rose 6 percent compared with the same period in 2002 on a 2 percent increase in ROP volume and a 7 percent advance in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have risen 5 percent.
Pro forma classified revenues increased 7 percent in the October period on a 4 percent increase in ad volume. Employment revenues increased 1 percent from the same period last year. However, on a constant currency basis, employment revenue would have declined 2 percent. Classified real estate revenues increased 10 percent and automotive rose 2 percent. Overall, the company’s classified results from Newsquest were stronger than its domestic results. On a constant currency basis, pro forma classified revenues would have increased 5 percent.
Pro forma local advertising revenues rose 2 percent in the tenth period on a 1 percent decline in 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., local ad revenue gains were achieved in the grocery, health, financial and telecommunications categories while there was continued softness in department stores and consumer electronics.
Pro forma national advertising revenues increased 14 percent on a 5 percent increase in ad volume. National volume at the company’s local domestic newspapers rose 4 percent in the period compared with the same interval in 2002. USA WEEKEND, our weekly newspaper magazine, and our Newsquest properties experienced higher national ad revenues during the period. While our revenue statistics include their results, USA WEEKEND and Newsquest’s ad volume is not included in the linage numbers. At USA TODAY, advertising revenues were 15 percent higher on a 14 percent increase in paid ad pages to 592 from 518. For the month, at USA TODAY, technology, automotive, telecommunications and pharmaceutical advertising were strong and more than offset lower travel and retail spending. For the year-to-date, USA TODAY’s paid pages numbered 3,931 versus 3,949 last year while ad revenues were 4 percent higher than last year.
Television revenues declined 26 percent in the period reflecting substantially reduced political advertising. National revenues fell 42 percent and local revenues declined 9 percent. For comparison purposes, television revenues rose 48 percent in the same period last year. Based on October results and pacings for November and December, television revenues are currently lagging last year’s fourth quarter results in the mid teens.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for September from Nielsen//Net Ratings. In September, Gannett’s domestic Websites had 14.6 million unique visitors reaching about 12 percent of the Internet audience.
The pro forma advertising and circulation revenue statistics include the results of the SMG (Newsquest’s Scottish Media Group) publishing business and Texas-New Mexico Newspapers Partnership as if they had been owned in both years. Ad linage for Newsquest is 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.
Gannett Co., Inc. is a leading international news and information company that publishes 100 daily newspapers in the USA, including USA TODAY, the nation’s largest-selling daily newspaper. The company also owns almost 500 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 10 (September 29, 2003 - November 2, 2003)
%
2003 2002 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 176,869,000 $ 172,594,000 $ 4,275,000 2
National 79,471,000 69,948,000 9,523,000 14
Classified 173,994,000 163,171,000 10,823,000 7
------------- ------------- ------------ ----
Total Advertising $ 430,334,000 $ 405,713,000 $ 24,621,000 6
Circulation 114,333,000 113,903,000 430,000 0
Other revenue 39,135,000 38,665,000 470,000 1
Television 78,427,000 105,841,000 (27,414,000) (26)
------------- ------------- ------------ ----
Total Revenue $ 662,229,000 $ 664,122,000 $ (1,893,000) (0)
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 3,703,930 3,756,952 (53,022) (1)
National 411,999 391,680 20,319 5
Classified 5,808,674 5,601,183 207,491 4
------------- ------------- ------------ ----
Total ROP 9,924,603 9,749,815 174,788 2
============= ============= ============ ====
Preprint Distribution
(in thousands) 1,100,802 1,024,080 76,722 7
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,201,619 7,270,072 (68,453) (1)
Evening 1,255,589 1,294,433 (38,844) (3)
------------- ------------- ------------ ----
Total Daily 8,457,208 8,564,505 (107,297) (1)
============= ============= ============ ====
Sunday 7,040,768 7,115,029 (74,261) (1)
============= ============= ============ ====
Year-to-Date through November 2, 2003
%
2003 2002 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 1,488,221,000 $ 1,448,920,000 $ 39,301,000 3
National 595,009,000 563,982,000 31,027,000 6
Classified 1,560,399,000 1,491,441,000 68,958,000 5
-------------- -------------- ------------- ----
Total Advertising $ 3,643,629,000 $ 3,504,343,000 $ 139,286,000 4
Circulation 1,028,523,000 1,024,299,000 4,224,000 0
Other revenue 314,345,000 298,368,000 15,977,000 5
Television 601,633,000 648,365,000 (46,732,000) (7)
-------------- -------------- ------------- ----
Total Revenue $ 5,588,130,000 $ 5,475,375,000 $ 112,755,000 2
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 30,914,528 31,468,214 (553,686) (2)
National 3,360,429 3,124,923 235,506 8
Classified 49,962,382 48,305,117 1,657,265 3
-------------- -------------- ------------- ----
Total ROP 84,237,339 82,898,254 1,339,085 2
============== ============== ============= ====
Preprint Distribution
(in thousands) 9,050,219 8,283,275 766,944 9
============== ============== ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,069,050 7,131,972 (62,922) (1)
Evening 1,261,922 1,300,632 (38,710) (3)
-------------- -------------- ------------- ----
Total Daily 8,330,972 8,432,604 (101,632) (1)
============== ============== ============= ====
Sunday 7,033,137 7,088,017 (54,880) (1)
============== ============== ============= ====
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 SMG Publishing (acquired in April 2003). SMG Publishing consists of three Scottish newspapers: The Herald, Sunday Herald and Evening Times; eleven specialty consumer and business-to-business magazine titles; and an online advertising and content business.
Newsquest (which includes SMG Publishing) 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 seventeen paid daily newspapers are included above. 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.
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Gannett Online Internet Audience September 2003Nielsen//NetRatings Home/Work Panel Combined Unique Visitors Percentage Reach of Per Month Internet Audience Gannett Online 14,595,000 12%