News Release
Monday, April 12, 2004
Gannett Co., Inc. Releases March Statistical Report
McLEAN, VA - Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the third period ended March 28, 2004 increased 10.2 percent, benefiting from improved advertising demand, particularly in classified and stronger television advertising revenues. For comparison purposes, the continued increase in the exchange rate of Sterling year-over-year 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 increased 7.2 percent.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in March were up 13.5 percent compared with 2003's third period on a 4.4 percent advance in ROP volume and a 4.8 percent increase in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have risen 9.9 percent.
Pro forma classified revenues increased 16.1 percent in the third period on a 5.1 percent increase in ROP ad volume. Employment revenues increased 22.9 percent compared to the third period last year. Classified real estate revenues advanced 12.8 percent and automotive rose 8.8 percent. On a constant currency basis, employment revenues would have increased 15.3 percent, real estate revenues 6.5 percent and automotive 5.4 percent. On a constant currency basis, pro forma classified revenues would have increased 10.2 percent.
Pro forma local advertising revenues increased 8.6 percent on a 2.2 percent increase in ROP 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, across all products, were achieved in almost all categories except department stores and consumer electronics. On a constant currency basis, pro forma local advertising would have increased 6.7 percent.
Pro forma national advertising revenues rose 20.0 percent on a 13.7 percent increase in ad volume. National volume at the company's local domestic newspapers advanced 13.9 percent in the period compared with the same period in 2003. At USA TODAY, advertising revenues were up 24.9 percent on a 15.8 percent increase in paid ad pages to 381 from 329. USA TODAY's year-to-date paid pages totaled 1,099 compared to 1,096 for the prior year while ad revenues were 10.0 percent higher. For the third period, at USA TODAY, results were better for nearly every advertising category. The travel, retail, telecommunications, financial and advocacy categories were particularly strong.
Pro forma television revenues increased 11.2 percent in the period. Local revenues increased 10.6 percent and national revenues increased 14.6 percent. Based on current pacings, television revenues are ahead of last year's second quarter results in the high single digits.
The pro forma advertising and circulation revenue statistics include the results of NurseWeek (acquired in February 2004), Clipper Magazine (acquired in October 2003), the SMG (Newsquest's Scottish Media Group) publishing business and the Texas-New Mexico Newspapers Partnership as if they had been owned in both years. Ad linage for Newsquest, Clipper and NurseWeek 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.
Prior to 2004, the company had included online revenues in the classified advertising revenue total but not in the specific classified categories of help wanted, automotive and real estate. Print and online ad revenues are now reported on a combined basis to calculate the percentage changes in these categories. Results for each period of 2003 have been reclassified to reflect this change.
Gannett Co., Inc. is a leading international news and information company that publishes 101 daily newspapers in the USA, including USA TODAY, the nation's largest-selling daily newspaper. The company also owns more than 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 most of 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 3 (March 1, 2004 - March 28, 2004)
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 171,581,000 $ 157,973,000 $ 13,608,000 8.6
National 65,382,000 54,492,000 10,890,000 20.0
Classified 179,531,000 154,580,000 24,951,000 16.1
------------- ------------- ------------ ----
Total Advertising $ 416,494,000 $ 367,045,000 $ 49,449,000 13.5
Circulation 103,216,000 102,988,000 228,000 0.2
Other revenue 32,528,000 31,651,000 877,000 2.8
Television 58,852,000 52,943,000 5,909,000 11.2
------------- ------------- ------------ ----
Total Revenue $ 611,090,000 $ 554,627,000 $ 56,463,000 10.2
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 2,926,981 2,862,683 64,298 2.2
National 346,618 304,784 41,834 13.7
Classified 4,676,730 4,448,797 227,933 5.1
------------- ------------- ------------ ----
Total ROP 7,950,329 7,616,264 334,065 4.4
============= ============= ============ ====
Preprint Distribution
(in thousands) 905,434 864,288 41,146 4.8
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,338,974 7,370,612 (31,638) (0.4)
Evening 1,233,309 1,268,980 (35,671) (2.8)
------------- ------------- ------------ ----
Total Daily 8,572,283 8,639,592 (67,309) (0.8)
============= ============= ============ ====
Sunday 7,015,831 7,161,706 (145,875) (2.0)
============= ============= ============ ====
Year-to-Date through March 28, 2004
%
2004 2003 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 478,968,000 $ 451,877,000 $ 27,091,000 6.0
National 184,223,000 166,744,000 17,479,000 10.5
Classified 494,716,000 439,357,000 55,359,000 12.6
-------------- -------------- ------------- ----
Total Advertising $ 1,157,907,000 $ 1,057,978,000 $ 99,929,000 9.4
Circulation 312,263,000 310,406,000 1,857,000 0.6
Other revenue 91,939,000 90,121,000 1,818,000 2.0
Television 169,458,000 158,176,000 11,282,000 7.1
-------------- -------------- ------------- ----
Total Revenue $ 1,731,567,000 $ 1,616,681,000 $ 114,886,000 7.1
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 8,664,808 8,651,728 13,080 0.2
National 1,048,403 927,651 120,752 13.0
Classified 14,196,287 13,632,625 563,662 4.1
-------------- -------------- ------------- ----
Total ROP 23,909,498 23,212,004 697,494 3.0
============== ============== ============= ====
Preprint Distribution
(in thousands) 2,641,891 2,568,155 73,736 2.9
============== ============== ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,185,459 7,208,875 (23,416) (0.3)
Evening 1,231,614 1,264,961 (33,347) (2.6)
-------------- -------------- ------------- ----
Total Daily 8,417,073 8,473,836 (56,763) (0.7)
============== ============== ============= ====
Sunday 7,000,490 7,141,173 (140,683) (2.0)
============== ============== ============= ====
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 NurseWeek (acquired in February
2004), Clipper Magazine (acquired in late October 2003), SMG Publishing
(acquired in April 2003) and 100% of the Texas-New Mexico Newspapers
Partnership (established in March 2003). NurseWeek is a multimedia
company with print publications focused on the recruitment, recognition
and education of nurses. Clipper Magazine is a direct-mail advertising
magazine company publishing over 325 individual market editions in 24
states, which are mailed to over 100 million American homes annually.
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.
Circulation volume and advertising linage statistics for non-daily
products, including NurseWeek and Clipper Magazine are not reflected
above.
Certain online advertising revenues in 2003 have been reclassified to
conform with the 2004 presentation. There was no effect on total
revenues.