MCLEAN, Va., Jun 18, 2007 (BUSINESS WIRE) -- Gannett Co., Inc. (NYSE:GCI) reported today that total pro forma
operating revenues for the fifth period ended June 3, 2007 declined
6.0 percent compared with the same 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 7.0 percent lower.
Pro forma newspaper advertising revenues in May were down 6.8
percent compared with May 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 8.0 percent lower.
Pro forma local advertising revenues were 6.3 percent lower in the
fifth period. In the U.S., across all products, all major categories
excluding telecommunications lagged last year. On a constant currency
basis, local advertising would have been down 6.9 percent. Local
advertising revenues at Newsquest were 5.9 percent higher in pounds in
the period.
Pro forma classified revenues declined 8.0 percent in the fifth
period. On a constant currency basis, pro forma classified revenues
would have been 9.9 percent lower. Real estate revenues were down 9.2
percent, employment revenues were 9.6 percent lower, and automotive
revenues declined 13.0 percent. If the exchange rate had remained
constant year-over-year, real estate would have been 11.2 percent
lower, employment would have declined 11.5 percent and automotive
would have been down 14.6 percent. Classified results at Newsquest in
the UK were significantly better than in the U.S. community
newspapers. At our U.S. community newspapers, pro forma classified
revenues were 12.9 percent lower for the fifth period reflecting
declines of 18.8 percent in real estate revenues, 14.0 percent in
employment revenues and 13.0 percent in automotive revenues. For
comparison purposes, classified real estate and employment revenues
increased 21.0 percent and 2.5 percent, respectively, at our domestic
community newspapers in May 2006. Classified revenues at our
operations in the UK were 3.4 percent lower, in pounds, in part
reflecting the negative impact of an additional bank holiday in the
period. A 3.8 percent increase in real estate was offset by declines
of 5.7 percent in employment and 19.1 percent in automotive.
Pro forma national advertising revenues for the fifth period were
down 5.4 percent. At USA TODAY, advertising revenues declined 7.8
percent on paid ad pages of 324 versus 379 last year. USA WEEKEND, our
weekly newspaper magazine, and Newsquest experienced higher national
advertising revenues in the period. In the fifth period at USA TODAY,
significant growth in the telecommunications, home and building,
packaged goods and credit card categories was offset by weakness in
the entertainment, travel, automotive and technology categories.
Pro forma broadcasting revenues, which include Captivate, were 8.9
percent lower for May due, in part, to the absence of significant
political revenue that benefited last year's fifth period. Television
revenues were down 9.5 percent in the period reflecting declines of
9.0 percent in local revenues and 14.7 percent in national revenues.
Based on results to date and current pacings, television revenues for
the second quarter of 2007 would lag the second quarter of 2006 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
May from Nielsen//Net Ratings. In May, Gannett's domestic Web sites
had 22.1 million unique visitors reaching approximately 14 percent of
the Internet audience.
On May 7, 2007, the company completed its sale of the Norwich (CT)
Bulletin, the Rockford (IL) Register Star, the Observer-Dispatch in
Utica, NY, and The Herald-Dispatch in Huntington, WV. In addition, the
Chronicle-Tribune in Marion, IN, was contributed to the Gannett
Foundation on May 21, 2007. The revenue and statistical data related
to these properties has been excluded from all periods presented.
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 Gannett Health Care Group 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.
Gannett Co., Inc. is a leading international news and information
company that publishes 85 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 18 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.
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
Period 5 (May 7, 2007 - June 3, 2007)
%
2007 2006 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 173,667,000 $185,311,000 $(11,644,000) (6.3)
National 66,800,000 70,612,000 (3,812,000) (5.4)
Classified 164,321,000 178,531,000 (14,210,000) (8.0)
-------------- ------------ ------------ ------
Total Advertising $ 404,788,000 $434,454,000 $(29,666,000) (6.8)
Circulation 95,724,000 98,096,000 (2,372,000) (2.4)
Other revenue 40,066,000 40,081,000 (15,000) (0.0)
Broadcasting 65,692,000 72,075,000 (6,383,000) (8.9)
-------------- ------------ ------------ ------
Total Revenue $ 606,270,000 $644,706,000 $(38,436,000) (6.0)
-------------- ------------ ------------ ------
VOLUME:
Newspaper Inches:
Local 2,517,573 2,747,326 (229,753) (8.4)
National 255,850 326,008 (70,158) (21.5)
Classified 3,964,248 4,332,405 (368,157) (8.5)
-------------- ------------ ------------ ------
Total ROP 6,737,671 7,405,739 (668,068) (9.0)
-------------- ------------ ------------ ------
Preprint
Distribution
(000) 873,979 952,223 (78,244) (8.2)
-------------- ------------ ------------ ------
NET PAID
CIRCULATION:
Morning (w/USAT) 6,718,148 6,901,869 (183,721) (2.7)
Evening 871,212 893,210 (21,998) (2.5)
-------------- ------------ ------------ ------
Total Daily 7,589,360 7,795,079 (205,719) (2.6)
-------------- ------------ ------------ ------
Sunday 5,820,174 6,078,439 (258,265) (4.2)
-------------- ------------ ------------ ------
Year-to-Date through June 3, 2007
%
2007 2006 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 886,965,000 $ 895,884,000 $ (8,919,000) (1.0)
National 333,178,000 347,519,000 (14,341,000) (4.1)
Classified 864,647,000 908,177,000 (43,530,000) (4.8)
-------------- -------------- ------------ ------
Total Advertising $2,084,790,000 $2,151,580,000 $(66,790,000) (3.1)
Circulation 529,291,000 532,186,000 (2,895,000) (0.5)
Other revenue 207,264,000 189,022,000 18,242,000 9.7
Broadcasting 326,354,000 349,111,000 (22,757,000) (6.5)
-------------- -------------- ------------ ------
Total Revenue $3,147,699,000 $3,221,899,000 $(74,200,000) (2.3)
-------------- -------------- ------------ ------
VOLUME:
Newspaper Inches:
Local 13,090,189 13,661,584 (571,395) (4.2)
National 1,390,614 1,577,543 (186,929) (11.8)
Classified 20,754,143 22,382,894 (1,628,751) (7.3)
-------------- -------------- ------------ ------
Total ROP 35,234,946 37,622,021 (2,387,075) (6.3)
-------------- -------------- ------------ ------
Preprint
Distribution
(000) 4,654,099 4,823,982 (169,883) (3.5)
-------------- -------------- ------------ ------
NET PAID
CIRCULATION:
Morning (w/USAT) 6,831,912 6,923,310 (91,398) (1.3)
Evening 874,286 902,133 (27,847) (3.1)
-------------- -------------- ------------ ------
Total Daily 7,706,198 7,825,443 (119,245) (1.5)
-------------- -------------- ------------ ------
Sunday 5,961,378 6,165,125 (203,747) (3.3)
-------------- -------------- ------------ ------
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) and WATL-TV in Atlanta (acquired in August
2006 and operated as a duopoly along with WXIA-TV). Revenue
amounts and statistics for the Norwich (CT) Bulletin, the
Rockford (IL) Register Star, the Observer-Dispatch in Utica, NY
and The Herald-Dispatch in Huntington, WV, which were sold in
May 2007, are excluded from all periods presented. The revenue
and statistical data related to the former Gannett owned
newspapers the Chronicle-Tribune in Marion, IN and the Muskogee
(OK) Phoenix which were contributed to the Gannett Foundation
in May 2007 and April 2006 respectively, have 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 and advertising linage statistics for non-
daily products, including Gannett Healthcare Group and Clipper
Magazine are not reflected above.
Gannett Online Internet Audience
May 2007
Nielsen//Net Ratings
--------------------------
Home/Work Panel Combined
Unique Visitors Per Percentage Reach of
Month Internet Audience
Gannett Online 22,123,000 13.8%
SOURCE: Gannett Co., Inc.
Gannett Co., Inc.
Jeff Heinz
Director, Investor Relations
703-854-6917
jheinz@gannett.com