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Press Release Source: Gannett Co., Inc.
Gannett Co., Inc. Releases January Statistical Report
Wednesday February 15, 8:14 am ET
MCLEAN, Va.--(BUSINESS WIRE)--Feb. 15, 2006--Gannett Co., Inc. (NYSE:GCI - News) reported today that total pro forma operating revenues for the first period ended January 29, 2006 were down 0.6 percent reflecting higher ad demand at its domestic community newspapers offset by lower ad demand at its UK properties. For comparison purposes, 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 0.4 percent.
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Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in January were 0.6 percent lower compared with the same period in 2005 on a 1.3 percent decline in ROP volume and a 2.6 percent increase in preprint distribution. If the exchange rate had remained constant year-over-year, total pro forma newspaper advertising revenues would have been 0.6 percent higher.
Pro forma local advertising revenues were almost 1.0 percent higher on a slight decline 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 January. In the U.S., local ad revenue gains were achieved in the consumer electronics, financial and home improvement categories. However, the department stores, furniture, entertainment and telecommunications categories declined compared to the same period a year ago. On a constant currency basis, pro forma local advertising would have been up 1.5 percent.
Pro forma classified revenues decreased 2.3 percent in the first period on a 2.1 decline in ROP ad volume. On a constant currency basis, pro forma classified revenues would have been down slightly. Classified real estate revenues rose 6.8 percent from the same period last year. Employment revenues were down 4.0 percent while automotive revenues were 15.5 percent lower. On a constant currency basis, real estate revenues would have been up 9.0 percent, employment and automotive revenues would have been down 1.7 percent and 14.0 percent, respectively. Overall, the company's domestic classified results were better than its UK results. In the U.S., pro forma classified revenues increased 3.6 percent reflecting a 12.6 percent increase in real estate revenues and a 6.1 percent increase in employment revenues while automotive revenues were 11.0 percent lower.
Pro forma national advertising revenues increased 0.5 percent on a 0.6 increase in ad volume. National volume at the company's local domestic newspapers was 2.3 percent higher in the period compared with the same interval in 2005. At USA TODAY, advertising revenues declined 2.5 percent on a 10.4 percent decline in paid ad pages to 328 from 366. For the first period, at USA TODAY, results from the technology and telecommunications categories were strong while the entertainment, automotive, travel and financial categories lagged last year's results. On a constant currency basis, pro forma national advertising would have been up almost 1 percent.
Pro forma broadcasting revenues were down 0.6 percent in the first period. Compared to the same period in 2005, local television revenues were up 4.7 percent while national revenues were 8.6 percent lower. Based on results to date and current pacings for the remainder of the quarter, television revenues are ahead of last year's first quarter results in the high single digits reflecting primarily the impact of ad demand related to the Winter Olympics on our NBC affiliates in February.
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for January from Nielsen//NetRatings. In January, Gannett's domestic Websites had approximately 23.4 million unique visitors reaching over 15 percent of the Internet audience.
On December 1, 2005, Gannett Co., Inc., and MediaNews Group, Inc. announced an agreement to expand their Texas-New Mexico Newspapers Partnership to include four newspapers in Pennsylvania. The transaction closed on December 25, 2005. Gannett contributed the Public Opinion of Chambersburg, PA to the partnership. MediaNews Group contributed the York Daily Record and York Sunday News, the Lebanon Daily News of Lebanon and the Evening Sun of Hanover. The York Daily Record and York Sunday News continue to operate under the terms of a JOA which includes the York Dispatch. As a result of this transaction, the company's ownership interest was reduced and Media News became the managing partner. The Texas-New Mexico Newspapers Partnership is no longer fully consolidated in the company's financial statements. Rather, the company's 40.6 percent interest in the partnership is included in other operating revenues.
On August 3, 2005, the company and MediaNews Group announced the reorganization of the Detroit Newspaper Agency. As part of the transaction, Knight Ridder sold its newspaper interests in Detroit to Gannett and MediaNews Group and the two newspaper publishers formed the Detroit Newspaper Partnership, L.P. MediaNews Group acquired The Detroit News from Gannett and Gannett acquired the Detroit Free Press. Detroit's results have been fully consolidated in the financial statements of Gannett along with a minority interest charge for MediaNews Group's interest.
In a separate transaction on August 29, 2005, the company completed an exchange of assets with Knight Ridder, Inc. in which Knight Ridder received from Gannett The (Boise) Idaho Statesman, and two newspapers in the state of Washington: The (Olympia) Olympian, and The Bellingham Herald. In return, Gannett received the Tallahassee (FL) Democrat and cash consideration. Therefore, all previously reported results for the former Gannett properties have been reclassified to income from discontinued operations. For comparison purposes, a schedule of the company's quarterly statements of income for 2005 reflecting the reclassification is attached. The schedule is also posted on the Investor Relations portion of our website, www.gannett.com.
The pro forma advertising and circulation revenue statistics include the results for Exchange & Mart and Auto Exchange (acquired in September 2005), Tallahassee (acquired August 29, 2005), 100 percent of the Detroit Newspaper Partnership (established August 2005), Mint Magazine (acquired in July 2005) and HomeTown Communications (acquired in late March 2005). The pro forma other revenue statistics include the results for PointRoll, Inc. (acquired in June 2005). 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. The revenue and statistical data related to the former Gannett owned newspapers in Bellingham (WA), Olympia (WA) and Boise (ID) has been excluded from all periods presented.
Gannett Co., Inc. is a leading international news and information company that publishes 91 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 more than 300 titles, including 17 daily newspapers, and a network of prize-winning Web sites. Gannett also operates 21 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.
ping
Gee, maybe if FR were able to post content from their web sites it would attract some visitors to those websites, thereby generating some ad revenue.
Bwah hah hah...
AP's spin..
AP
Gannett January Revenue Edges Lower
Wednesday February 15, 9:20 am ET
Gannett Revenue Edges Down 0.6 Percent in January
MCLEAN, Va. (AP) -- Gannett Co., the nation's largest newspaper publisher, said Wednesday its revenue edged lower in January compared to the year before, as weak advertising demand at its British newspapers offset better business at home.
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The publisher of USA Today and other papers said its revenue fell 0.6 percent during the month to $622.1 million from $626.2 million in January 2005.
The company's results assume that all properties it currently owns were owned in both periods.
Gannett blamed the decline on lower demand at its British newspapers, which is one of the country's largest newspaper groups, as well as a negative impact from the currency exchange rate. If the exchange rate had remained constant year-over-year, Gannett said its total revenue would have increased 0.4 percent in January.
Gannett said newspaper ad revenue fell 0.6 percent last month, on a 1.3% drop in run-of-press, or ROP, volume and a 2.6% rise in preprint distribution.
Local ad revenue grew by almost 1 percent, and national ad revenue edged up 0.5 percent.
Classified ad revenue fell 2.3 percent.
In the broadcasting business, Gannett said its revenue declined 0.6 percent, as local television revenue grew 4.7 percent, but national revenue dropped 8.6 percent.
More analysis - here's the nut.. "At USA Today, ad revenue fell 2.5% as paid ad pages declined 10.4%"
Gannett's January revenue slips 0.6%
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By David B. Wilkerson, MarketWatch
Last Update: 10:18 AM ET Feb 15, 2006
CHICAGO (MarketWatch) -- Gannett Co.'s total January revenue fell 0.6% from the same month last year, the largest U.S. newspaper publisher said Wednesday.
The revenue figures assume the McLean, Va.-based media company (GCI) owned the same properties for 12 months.
Gannett, which also owns 21 television stations, said pro-forma revenue dipped to $622.1 million from $626.2 million in January of 2005.
Pro-forma advertising also fell 0.6%, to $415.6 million, as decreased ad volume at the company's U.K. properties offset higher ad demand at Gannett's domestic community newspapers.
At USA Today, ad revenue fell 2.5% as paid ad pages declined 10.4%. The national newspaper saw drop-offs from the same month last year in the entertainment, automotive, travel and financial categories. Technology and telecommunications ad sales improved.
Pro-forma national advertising was up 0.5% to $69.4 million.
Also on a pro-forma basis, local advertising rose 0.8% to $173.8 million. In the U.S., ad sales were higher in the consumer-electronics, financial and home-improvement categories, while sales of department-store, furniture, entertainment and telecom ads declined.
Classified advertising declined 2.3% to $172.4 million, hampered by a 15.5% drop in automotive revenue. Help-wanted ads also fell, down 4%, but real estate was up 6.8%.
Automotive classified weakness has been a recurring theme that newspaper publishers have endured for several quarters, just as strength in real-estate ads has been a constant.
January's results in the U.S. were better than those in the U.K., where Gannett owns Newsquest, the publisher of more than 300 titles, including 17 daily newspapers.
Circulation revenue fell 3.1% to $116 million.
Revenue at the company's TV stations eased 0.6% to $55.3 million, but the company has 12 NBC affiliates that are benefiting from that network's coverage of the XX Winter Olympics. Due to Olympic-related ad demand, TV revenue is up by a high-single-digit percentage over last February, the company noted.
Gannett's shares traded narrowly higher in morning dealings. End of Story
David B. Wilkerson is a reporter for MarketWatch in Chicago