MCLEAN, Va.--(BUSINESS WIRE)--July 16, 2008--Gannett Co., Inc.
(NYSE:GCI) reported today that total pro forma operating revenues for
the sixth period ended June 29, 2008 declined 12.1 percent compared
with the same period in 2007. For comparison purposes, the exchange
rate of the British pound decreased slightly compared to last year. If
the exchange rate had remained constant year-over-year, total pro
forma operating revenues would have been 12.0 percent lower.
June
Publishing advertising revenues in June were down 16.3 percent
compared with the same period a year ago. On a constant currency basis
publishing advertising revenues would have declined 16.1 percent.
Retail advertising revenues declined 9.6 percent in June. In the
U.S., across all products, the decline was led by softness in the
department stores, furniture and telecommunications categories.
Classified revenues were down 21.6 percent in the sixth period.
Real estate revenues declined 33.9 percent, employment revenues were
25.6 percent lower and automotive revenues were down 13.9 percent. On
a constant currency basis, real estate revenues would have declined
33.7 percent, employment revenues would have been down 25.4 percent
and automotive revenues would have been 13.7 percent lower. For U.S.
community publishing, classified revenues were 22.5 percent lower in
the sixth period comprised of declines of 31.4 percent in real estate
revenues, 30.4 percent in employment revenues and 13.3 percent in
automotive revenues. Classified revenues at our operations in the UK
were 19.3 percent lower, in pounds, reflecting declines of 36.8
percent in real estate, 17.3 percent in employment and 14.9 percent in
automotive.
National advertising revenues for the sixth period were down 19.4
percent. At USA TODAY, advertising revenues were 26.5 percent lower on
paid ad pages of 236 versus 329 last year. At USA TODAY, the travel,
advocacy and restaurant categories were positive in the sixth period
while the entertainment, automotive, technology, financial, home and
building and telecommunications categories lagged last year.
Broadcasting revenues, which include Captivate, declined 7.9
percent. Television revenues were 8.1 percent lower in the period as
local and national revenues were down 10.8 percent and 8.5 percent,
respectively.
Second Quarter
For the second quarter of 2008, total pro forma operating revenues
were 10.1 percent lower and would have declined 10.0 percent on a
constant currency basis.
Publishing advertising revenues for the quarter declined 13.5
percent. Retail advertising revenues were down 8.3 percent. Classified
revenues were 18.7 percent lower for the quarter. Real estate revenues
declined 29.5 percent, employment revenues were down 23.2 percent and
automotive revenues declined 13.4 percent. Classified revenues were
21.0 percent lower for U.S. community publishing comprised of declines
of 30.4 percent in real estate, 28.9 percent in employment and 11.6
percent in automotive revenues. Classified revenues in the UK, in
pounds, were 13.8 percent lower in the quarter. Real estate revenues
were 27.5 percent lower, employment revenues were down 10.7 percent
and automotive revenues declined 18.7 percent.
National advertising revenues were 14.0 percent lower for the
quarter. At USA TODAY, advertising revenues were down 16.6 percent.
Paid advertising pages totaled 831 compared with 1,034 in the year-ago
period.
Broadcasting revenues declined 5.9 percent and television revenues
were 6.5 percent lower in the quarter. Significantly higher
politically related advertising was offset by softness in other
categories, particularly automotive. Based on where we are today, we
would expect television revenues for the third quarter to be up 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
June from Nielsen//Net Ratings. In June, Gannett's domestic Web sites
had 23.1 million unique visitors reaching 14.1 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.
To conform with current year presentation, the company's equity
share of operating results for 2007 from its newspaper partnerships,
including Tucson, which participates in a joint operating agency, the
California Newspapers Partnership and the Texas-New Mexico Newspapers
Partnership have been reclassified from "Other revenue" and are
reflected in a separate line in the Non-Operating section of the
Statement of Income titled "Equity income (losses) in unconsolidated
investees, net." Other revenue is now comprised principally of
commercial printing revenues and revenue from PointRoll.
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 900 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 17 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 2, 2008 - June 29, 2008)
%
2008 2007 CHANGE CHANGE
REVENUES:
Advertising:
Retail $ 156,982,000 $ 173,624,000 $ (16,642,000) (9.6)
National 49,796,000 61,748,000 (11,952,000) (19.4)
Classified 143,508,000 183,020,000 (39,512,000) (21.6)
------------- ------------- ------------- ------
Total
Advertising $ 350,286,000 $ 418,392,000 $ (68,106,000) (16.3)
Circulation 98,291,000 100,768,000 (2,477,000) (2.5)
Other revenue 37,208,000 36,499,000 709,000 1.9
Broadcasting 56,511,000 61,371,000 (4,860,000) (7.9)
------------- ------------- ------------- ------
Total
Revenue $ 542,296,000 $ 617,030,000 $ (74,734,000) (12.1)
------------- ------------- ------------- ------
NET PAID
CIRCULATION:
Morning
(w/USAT) 6,642,464 6,898,926 (256,462) (3.7)
Evening 425,407 453,763 (28,356) (6.2)
------------- ------------- ------------- ------
Total Daily 7,067,871 7,352,689 (284,818) (3.9)
------------- ------------- ------------- ------
Sunday 5,440,043 5,706,078 (266,035) (4.7)
------------- ------------- ------------- ------
Year-to-Date through June 29, 2008
%
2008 2007 CHANGE CHANGE
REVENUES:
Advertising:
Retail $ 984,219,000 $1,070,451,000 $ (86,232,000) (8.1)
National 343,752,000 371,204,000 (27,452,000) (7.4)
Classified 877,113,000 1,061,662,000 (184,549,000) (17.4)
------------- ------------- ------------- ------
Total
Advertising $2,205,084,000 $2,503,317,000 $(298,233,000) (11.9)
Circulation 615,172,000 630,040,000 (14,868,000) (2.4)
Other revenue 210,287,000 219,966,000 (9,679,000) (4.4)
Broadcasting 362,748,000 387,725,000 (24,977,000) (6.4)
------------- ------------- ------------- ------
Total
Revenue $3,393,291,000 $3,741,048,000 $(347,757,000) (9.3)
------------- ------------- ------------- ------
NET PAID
CIRCULATION:
Morning
(w/USAT) 6,854,222 7,166,226 (312,004) (4.4)
Evening 442,687 469,370 (26,683) (5.7)
------------- ------------- ------------- ------
Total Daily 7,296,909 7,635,596 (338,687) (4.4)
------------- ------------- ------------- ------
Sunday 5,606,260 5,917,198 (310,938) (5.3)
------------- ------------- ------------- ------
Note: To conform with current year presentation, the company's equity
share of operating results for 2007 from its newspaper
partnerships, including Tucson, which participates in a joint
operating agency, the California Newspapers Partnership and the
Texas-New Mexico Newspapers Partnership have been reclassified
from "Other revenue" above and are reflected in a separate line
in the Non-Operating section of the Statement of Income (Loss)
titled "Equity income (losses) in unconsolidated investees,
net." Other revenue is now comprised principally of commercial
printing revenues and revenue from PointRoll.
The above revenue amounts and statistics have been restated to
include all companies presently owned. In May 2007, Gannett
sold the Norwich (CT) Bulletin, the Rockford (IL) Register
Star, the Observer-Dispatch in Utica, NY and The Herald-
Dispatch in Huntington, WV. In May 2007, Gannett contributed
the Chronicle-Tribune in Marion, IN to the Gannett Foundation.
All revenue amounts and statistics related to the sold and
donated properties are excluded from all periods presented.
Circulation volume statistics from the company's newspaper in
Tucson, which participates in a joint operating agency, are
included above.
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 the 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.
Circulation volume statistics for non-daily products, including
Gannett Healthcare Group and Clipper Magazine are not reflected
above.
Effective Period 5, 2008, due to certain changes in delivery
times, Gannett has reclassified some net paid circulation
figures from evening to morning. All prior periods have been
restated to conform to the new classification.
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
2nd Quarter 2008 (March 31, 2008 - June 29, 2008)
%
2008 2007 CHANGE CHANGE
REVENUES:
Advertising:
Retail $ 505,196,000 $ 551,162,000 $ (45,966,000) (8.3)
National 168,934,000 196,364,000 (27,430,000) (14.0)
Classified 434,060,000 534,166,000 (100,106,000) (18.7)
------------- ------------- ------------- ------
Total
Advertising $1,108,190,000 $1,281,692,000 $(173,502,000) (13.5)
Circulation 305,994,000 312,434,000 (6,440,000) (2.1)
Other revenue 110,807,000 112,436,000 (1,629,000) (1.4)
Broadcasting 192,568,000 204,666,000 (12,098,000) (5.9)
------------- ------------- ------------- ------
Total
Revenue $1,717,559,000 $1,911,228,000 $(193,669,000) (10.1)
------------- ------------- ------------- ------
NET PAID
CIRCULATION:
Morning
(w/USAT) 6,827,566 7,088,188 (260,622) (3.7)
Evening 437,353 464,728 (27,375) (5.9)
------------- ------------- ------------- ------
Total Daily 7,264,919 7,552,916 (287,997) (3.8)
------------- ------------- ------------- ------
Sunday 5,535,334 5,804,055 (268,721) (4.6)
------------- ------------- ------------- ------
Note: To conform with current year presentation, the company's equity
share of operating results for 2007 from its newspaper
partnerships, including Tucson, which participates in a joint
operating agency, the California Newspapers Partnership and the
Texas-New Mexico Newspapers Partnership have been reclassified
from "Other revenue" above and are reflected in a separate line
in the Non-Operating section of the Statement of Income (Loss)
titled "Equity income (losses) in unconsolidated investees,
net." Other revenue is now comprised principally of commercial
printing revenues and revenue from PointRoll.
The above revenue amounts and statistics have been restated to
include all companies presently owned. In May 2007, Gannett
sold the Norwich (CT) Bulletin, the Rockford (IL) Register
Star, the Observer-Dispatch in Utica, NY and The Herald-
Dispatch in Huntington, WV. In May 2007, Gannett contributed
the Chronicle-Tribune in Marion, IN to the Gannett Foundation.
All revenue amounts and statistics related to the sold and
donated properties are excluded from all periods presented.
Circulation volume statistics from the company's newspaper in
Tucson, which participates in a joint operating agency, are
included above.
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 the 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.
Circulation volume statistics for non-daily products, including
Gannett Healthcare Group and Clipper Magazine are not reflected
above.
Effective Period 5, 2008, due to certain changes in delivery
times, Gannett has reclassified some net paid circulation
figures from evening to morning. All prior periods have been
restated to conform to the new classification.
Gannett Online Internet Audience
June 2008
Nielsen//Net Ratings
---------------------
Home/Work Panel Combined
Unique Visitors Percentage Reach of
Per Month Internet Audience
--------------- -------------------
Gannett Online 23,076,000 14.1%
CONTACT: Gannett Co., Inc.
Jeff Heinz
Director, Investor Relations
703-854-6917
jheinz@gannett.com
SOURCE: Gannett Co., Inc.