MCLEAN, Va.--(BUSINESS WIRE)--Feb. 20, 2007--Gannett Co., Inc.
(NYSE:GCI) reported today that total pro forma operating revenues for
the first period increased 1.7 percent, compared with the first 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 0.3 percent higher.
Pro forma newspaper advertising revenues in January were up 0.3
percent, compared with January 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 been 1.3 percent lower.
Pro forma local advertising revenues were 0.2 percent higher in
the first period. In the U.S., across all products, all major
categories, excluding health and restaurants, lagged last year. Local
advertising results in the U.S. for the first period in 2007 reflect
the absence of the final week in December (which was included in the
first period in 2006). That week is historically strong for local and
preprint advertising. Preprint advertising demand for the same week
was particularly high in the twelfth period in 2006. On a constant
currency basis, pro forma local advertising would have been 0.8
percent lower.
Pro forma classified revenues were 2.5 percent higher in the
period. On a constant currency basis, pro forma classified revenues
would have been flat. Real estate revenues were up 10.3 percent;
employment revenues were 6.0 percent higher while automotive revenues
were 13.5 percent lower. If the exchange rate had remained constant
year-over-year, real estate would have increased 7.4 percent,
employment would have been 3.1 percent higher and automotive would
have declined 15.3 percent. At our U.S. community newspapers, pro
forma classified revenues were 6.3 percent lower for the first period
reflecting declines of 2.1 percent in real estate revenues, 3.3
percent in employment revenues and 18.6 percent in automotive
revenues. Classified revenues at Newsquest in the UK were up 19.4
percent, in pounds, as real estate and employment increased 36.5
percent and 21.7 percent, respectively, while automotive was 2.1
percent lower. Newsquest's positive results in the first period
reflect, in part, the absence of the last week in December which is
generally a very soft week in the UK.
Pro forma national advertising revenues for January were 4.8
percent lower. At our local domestic newspapers, national volume was
down 13.2 percent in the period. At USA TODAY, advertising revenues
were down 6.0 percent on a decline in paid ad pages to 310 from 326.
For the first period, at USA TODAY, there was growth in the travel,
advocacy, home and building, retail and restaurant categories while
the technology, telecommunications, packaged goods and financial
categories lagged results for the same period in 2006.
Pro forma broadcasting revenues, which include Captivate, were 1.9
percent higher for the first period. Television revenues increased 1.1
percent in the period. National revenues were 2.9 percent lower, while
local revenues increased 0.9 percent. Based on current pacings,
television revenues for the first quarter of 2007 would lag last
year's first quarter in the high single to very low double digits,
reflecting primarily the absence of over $22 million of Olympic
revenue that benefited last year's first quarter.
Other revenue advanced 19.4 percent in the first period due
primarily to a significant increase in commercial printing and another
strong performance by PointRoll.
In addition to the revenue and statistical summary, attached is a
chart which shows the consolidated Gannett Online audience share for
January from Nielsen//Net Ratings. In January, Gannett's domestic
Websites had approximately 23.2 million unique visitors reaching 14.8
percent of the Internet audience.
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 Nursing Spectrum 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. The revenue and statistical data
related to the Muskogee (OK) Phoenix, which was contributed to the
Gannett Foundation in April 2006, has been excluded from all periods
presented.
Gannett Co., Inc. is a leading international news and information
company that publishes 90 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 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 1 (January 1, 2007 - February 4, 2007)
%
2007 2006 CHANGE CHANGE
REVENUES:
Advertising:
Local $173,102,000 $172,707,000 $ 395,000 0.2
National 66,590,000 69,970,000 (3,380,000) (4.8)
Classified 177,054,000 172,686,000 4,368,000 2.5
------------ ------------ ----------- -------
Total Advertising $416,746,000 $415,363,000 $ 1,383,000 0.3
============ ============ =========== =======
Circulation 117,379,000 115,867,000 1,512,000 1.3
Other revenue 41,849,000 35,046,000 6,803,000 19.4
Broadcasting 60,872,000 59,761,000 1,111,000 1.9
------------ ------------ ----------- -------
Total Revenue $636,846,000 $626,037,000 $10,809,000 1.7
============ ============ =========== =======
VOLUME:
Newspaper Inches:
Local 2,801,358 2,868,765 (67,407) (2.3)
National 304,366 347,255 (42,889) (12.4)
Classified 4,498,117 4,785,263 (287,146) (6.0)
------------ ------------ ----------- -------
Total ROP 7,603,841 8,001,283 (397,442) (5.0)
============ ============ =========== =======
Preprint Distribution
(in thousands) 935,800 1,041,549 (105,749) (10.2)
============ ============ =========== =======
NET PAID CIRCULATION:
Morning (w/USAT) 6,906,908 6,939,358 (32,450) (0.5)
Evening 879,163 903,348 (24,185) (2.7)
------------ ------------ ----------- -------
Total Daily 7,786,071 7,842,706 (56,635) (0.7)
============ ============ =========== =======
Sunday 6,243,899 6,370,118 (126,219) (2.0)
============ ============ =========== =======
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), WATL-TV in Atlanta (acquired in August 2006 and operated as
a duopoly along with WXIA-TV). The revenue and statistical data
related to the former Gannett owned newspaper the Muskogee (OK)
Phoenix which was contributed to the Gannett Foundation in April
2006, has 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 statistics for Detroit Free Press, a morning
newspaper, are reflected above. Circulation volume statistics for The
Detroit News, an evening newspaper, are 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
January 2007
Nielsen//Net Ratings
------------------------
Home/Work Panel Combined
Unique Visitors Percentage Reach of
Per Month Internet Audience
-------------------- ------------------------
Gannett Online 23,245,000 14.8%
CONTACT: Gannett Co., Inc.
Jeff Heinz
Director, Investor Relations
703-854-6917
jheinz@gannett.com
SOURCE: Gannett Co., Inc.