MCLEAN, Va.--(BUSINESS WIRE)--July 18, 2007--Gannett Co., Inc.
(NYSE: GCI) reported today that total pro forma operating revenues for
the sixth period ended July 1, 2007 declined 4.3 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
down 5.5 percent.
June
Pro forma newspaper advertising revenues in June were 6.2 percent
lower compared with the sixth period 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 declined 7.5 percent.
Pro forma local advertising revenues declined 6.2 percent in June.
In the U.S., across all products, all major categories except grocery
and telecommunications lagged last year's results. On a constant
currency basis, local advertising would have been down 7.0 percent.
Pro forma classified revenues were down 7.4 percent in the sixth
period. On a constant currency basis, pro forma classified revenues
would have been 9.5 percent lower. Real estate revenues were 11.5
percent lower, employment revenues were down 6.3 percent and
automotive revenues declined 13.1 percent. If the exchange rate had
remained constant year-over-year, the declines would have been 13.6
percent for real estate, 8.4 percent for employment and 14.7 percent
for automotive. 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 14.0
percent lower for the sixth period reflecting declines of 22.4 percent
in real estate revenues, 14.8 percent in employment revenues and 12.6
percent in automotive revenues. For comparison purposes, classified
real estate revenues at our domestic community newspapers increased
18.6 percent for the sixth period in 2006. Classified revenues at our
operations in the UK were down slightly, in pounds. Increases of 4.0
percent in employment, 2.0 percent in real estate and 4.1 percent in
other classified revenues were offset by a 20.1 percent decline in
automotive.
Pro forma national advertising revenues for the sixth period were
down 2.2 percent. At USA TODAY, advertising revenues were up 7.4
percent on paid ad pages of 329 versus 305 last year. In the sixth
period at USA TODAY, there was strong growth in the technology,
retail, home and building, packaged goods and pharmaceutical
categories while the entertainment, automotive and financial
categories lagged last year.
Pro forma broadcasting revenues, which include Captivate, were 5.8
percent lower for June. Over half of the decline reflected the absence
of politically related ad demand that positively impacted the sixth
period a year ago. Television revenues were down 7.0 percent in the
period as local revenues were 6.0 percent lower and national revenues
declined 12.7 percent.
Other revenue increased 5.2 percent reflecting higher commercial
printing revenues and strong revenue growth at PointRoll.
Second Quarter
For the second quarter of 2007, total pro forma operating revenues
were down 4.0 percent and would have been 5.3 percent lower on a
constant currency basis.
Pro forma newspaper advertising revenues for the quarter were 5.3
percent lower and would have been down 6.7 percent on a constant
currency basis.
For the quarter, pro forma local advertising declined 4.0 percent
and would have been 4.9 percent lower on a constant currency basis.
Pro forma classified revenues for the quarter declined 7.5
percent. Real estate revenues were 9.9 percent lower, employment was
down 7.1 percent and automotive declined 13.6 percent. Classified
revenues would have been 9.7 percent lower on a constant currency
basis as real estate would have been down 12.2 percent; employment
would have been 9.3 percent lower and automotive would have declined
15.4 percent. Classified revenues were 13.2 percent lower at our
domestic community newspapers comprised of declines of 19.5 percent in
real estate, 13.7 percent in employment and 14.1 percent in automotive
revenues. For comparison purposes, classified real estate revenues for
the second quarter a year ago were up 16.7 percent at our domestic
community newspapers. Classified revenues in the UK, in pounds, were
down 1.5 percent in the quarter as increases in real estate and
employment of 3.1 percent and 1.3 percent, respectively, were offset
by a 19.2 percent decline in automotive.
Pro forma national advertising revenues were down 2.8 percent for
the quarter. At USA TODAY, advertising revenues were down 1.1 percent.
Paid advertising pages totaled 1,034 compared with 1,098 in the
year-ago period.
Pro forma broadcasting revenues were 6.5 percent lower and
television revenues declined 7.1 percent. The decline was due, in
large part, to substantially lower political advertising that totaled
$9.5 million in the second quarter last year. Captivate revenues were
up 12.3 percent for the quarter. Based on current pacings, television
revenues for the third quarter of 2007 would lag last year's third
quarter in the low single digits. However, we generated over $19
million of political revenues in the third quarter of 2006.
Other revenue in the quarter increased 5.9 percent due primarily
to higher revenues at PointRoll.
In addition to the revenue and statistical summary, attached is a
chart which shows the consolidated Gannett Online audience share for
June from Nielsen//Net Ratings. In June, Gannett's domestic Web sites
had 21.8 million unique visitors reaching approximately 13.6 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 6 (June 4, 2007 - July 1, 2007)
%
2007 2006 CHANGE CHANGE
REVENUES:
Advertising:
Local $173,551,000 $185,092,000 $(11,541,000) (6.2)
National 63,216,000 64,661,000 (1,445,000) (2.2)
Classified 181,625,000 196,218,000 (14,593,000) (7.4)
----------- ----------- ------------ ------
Total Advertising $418,392,000 $445,971,000 $(27,579,000) (6.2)
Circulation 100,750,000 99,578,000 1,172,000 1.2
Other revenue 42,006,000 39,932,000 2,074,000 5.2
Broadcasting 61,371,000 65,171,000 (3,800,000) (5.8)
----------- ----------- ------------ ------
Total Revenue $622,519,000 $650,652,000 $(28,133,000) (4.3)
----------- ----------- ------------ ------
VOLUME:
Newspaper Inches:
Local 2,401,519 2,618,026 (216,507) (8.3)
National 269,732 267,079 2,653 1.0
Classified 4,016,311 4,430,877 (414,566) (9.4)
----------- ----------- ------------ ------
Total ROP 6,687,562 7,315,982 (628,420) (8.6)
----------- ----------- ------------ ------
Preprint
Distribution
(000) 902,347 906,929 (4,582) (0.5)
----------- ----------- ------------ ------
NET PAID CIRCULATION:
Morning (w/USAT) 6,509,363 6,618,727 (109,364) (1.7)
Evening 844,227 863,405 (19,178) (2.2)
----------- ----------- ------------ ------
Total Daily 7,353,590 7,482,132 (128,542) (1.7)
----------- ----------- ------------ ------
Sunday 5,706,078 5,975,768 (269,690) (4.5)
----------- ----------- ------------ ------
Year-to-Date through July 1, 2007
%
2007 2006 CHANGE CHANGE
REVENUES:
Advertising:
Local $1,069,634,000 $1,088,792,000 $ (19,158,000) (1.8)
National 380,028,000 394,692,000 (14,664,000) (3.7)
Classified 1,053,520,000 1,114,061,000 (60,541,000) (5.4)
------------- ------------- ------------- ------
Total
Advertising $2,503,182,000 $2,597,545,000 $ (94,363,000) (3.6)
Circulation 630,041,000 631,764,000 (1,723,000) (0.3)
Other revenue 249,271,000 228,959,000 20,312,000 8.9
Broadcasting 387,725,000 414,282,000 (26,557,000) (6.4)
------------- ------------- ------------- ------
Total
Revenue $3,770,219,000 $3,872,550,000 $(102,331,000) (2.6)
------------- ------------- ------------- ------
VOLUME:
Newspaper
Inches:
Local 15,423,652 16,178,204 (754,552) (4.7)
National 1,536,406 1,684,491 (148,085) (8.8)
Classified 24,962,420 27,075,324 (2,112,904) (7.8)
------------- ------------- ------------- ------
Total ROP 41,922,478 44,938,019 (3,015,541) (6.7)
------------- ------------- ------------- ------
Preprint
Distribution
(000) 5,556,305 5,731,006 (174,701) (3.0)
------------- ------------- ------------- ------
NET PAID
CIRCULATION:
Morning
(w/USAT) 6,777,453 6,872,911 (95,458) (1.4)
Evening 868,965 894,489 (25,524) (2.9)
------------- ------------- ------------- ------
Total Daily 7,646,418 7,767,400 (120,982) (1.6)
------------- ------------- ------------- ------
Sunday 5,918,197 6,133,562 (215,365) (3.5)
------------- ------------- ------------- ------
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 have been excluded from all periods
presented. The two newspapers were contributed to the Gannett
Foundation in May 2007 and April 2006, respectively.
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 CO., INC.
REVENUE & STATISTICAL SUMMARY
2nd Quarter 2007 (April 2, 2007 - July 1, 2007)
%
2007 2006 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 550,858,000 $ 574,079,000 $(23,221,000) (4.0)
National 200,815,000 206,495,000 (5,680,000) (2.8)
Classified 529,883,000 572,911,000 (43,028,000) (7.5)
------------- ------------- ------------ ------
Total
Advertising $1,281,556,000 $1,353,485,000 $(71,929,000) (5.3)
Circulation 312,506,000 314,544,000 (2,038,000) (0.6)
Other revenue 129,497,000 122,282,000 7,215,000 5.9
Broadcasting 204,666,000 219,005,000 (14,339,000) (6.5)
------------- ------------- ------------ ------
Total Revenue $1,928,225,000 $2,009,316,000 $(81,091,000) (4.0)
------------- ------------- ------------ ------
VOLUME:
Newspaper Inches:
Local 7,604,315 8,154,366 (550,051) (6.7)
National 683,864 725,597 (41,733) (5.8)
Classified 12,505,243 13,791,806 (1,286,563) (9.3)
------------- ------------- ------------ ------
Total ROP 20,793,422 22,671,769 (1,878,347) (8.3)
------------- ------------- ------------ ------
Preprint
Distribution
(000) 2,704,673 2,823,174 (118,501) (4.2)
------------- ------------- ------------ ------
NET PAID
CIRCULATION:
Morning (w/USAT) 6,746,491 6,884,741 (138,250) (2.0)
Evening 861,392 884,235 (22,843) (2.6)
------------- ------------- ------------ ------
Total Daily 7,607,883 7,768,976 (161,092) (2.1)
------------- ------------- ------------ ------
Sunday 5,868,455 6,129,779 (261,324) (4.3)
------------- ------------- ------------ ------
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 have been excluded from all periods
presented. The two newspapers were contributed to the Gannett
Foundation in May 2007 and April 2006, respectively.
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
June 2007
Nielsen//Net Ratings
---------------------
Home/Work Panel Combined
Unique Visitors Percentage Reach of
Per Month Internet Audience
--------------- -------------------
Gannett Online 21,779,000 13.6%
CONTACT: Gannett Co., Inc.
Jeff Heinz, 703-854-6917
Director, Investor Relations
jheinz@gannett.com
SOURCE: Gannett Co., Inc.