SECURITIES AND EXCHANGE
COMMISSION
Washington, D.C. 20549
CURRENT REPORT
PURSUANT TO
SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported):
July 15, 2003
Commission file number 1-6961
GANNETT CO., INC.
(Exact name of registrant as specified in charter)
| Delaware | 16-0442930 | |
| (State or Other Jurisdiction of Incorporation or Organization of Registrant) | (I.R.S. Employer Identification No.) | |
| 7950 Jones Branch Drive, McLean, Virginia | 22107-0910 | |
| (Address of principal executive offices) | (Zip Code) |
Registrant's telephone number, including area code: (703) 854-6000.
Item 12. Results of Operations and Financial Condition
On July 15, 2003, Gannett Co., Inc. announced its consolidated financial results for the second quarter ended June 29, 2003. On July 15, 2003, the company also issued a press release announcing the company's statistical report for the period and quarter ended June 29, 2003. Copies of these press releases are furnished with this report as exhibits to Form 8-K.
The information contained in this report on Form 8-K is being furnished pursuant to Item 12 of Form 8-K. This report has been filed with the electronic filing system of the U.S. Securities and Exchange Commission as a Form 8-K containing Item 9 disclosure as directed by the U.S. Securities and Exchange Commission in Release No. 34-47583.
SIGNATURE
Pursuant to requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
Gannett Co., Inc. | ||
|
Date: July 15, 2003 |
By: | /s/ |
| George R. Gavagan | ||
| Vice President and Controller |
Exhibit Index
|
Exhibit |
Description | |
|
99.1 |
Gannett Co., Inc. Earnings Press Release dated July 15, 2003 | |
|
99.2 |
Gannett Co., Inc. Statistical Report Press Release dated July 15, 2003 |
News Release
Tuesday, July 15, 2003
Gannett Co., Inc. Reports Second Quarter Results
McLEAN, VA - Gannett Co., Inc. (NYSE: GCI) reported today that 2003 second quarter earnings per diluted share, on a GAAP (generally accepted accounting principles) basis, were $1.20 versus $1.13 for the second quarter of 2002, a 6 percent increase. Another quarter of positive earnings growth was achieved by the company despite the effects of the war in Iraq early in the quarter and a continued sluggish economy.
Diluted earnings per share for the first six months of 2003 were $2.12 compared with $2.04 for the same interval in 2002.
Total operating revenues for the second quarter increased 6 percent to $1.71 billion from $1.61 billion in the same quarter last year. Net income rose 7 percent to $324.3 million versus $303.9 million in 2002's second quarter. Operating cash flow (defined as operating income plus depreciation and amortization) increased to $585.4 million from $559.4 million for the second quarter of 2002, a 5 percent increase.
For the first six months of 2003, total revenues increased 4 percent to $3.26 billion. Net income rose 5 percent to $574.1 million from $547.5 million and operating cash flow advanced 3 percent to $1.05 billion.
Average diluted shares outstanding in the second quarter totaled 271,281,000 compared with 269,473,000 in 2002's second quarter.
Commenting on the company's results, Douglas H. McCorkindale, Chairman, President and CEO said: "Gannett continues to deliver solid earnings growth despite an uneven and tentative economic environment. Our newspaper operations, particularly the strong performance of the Newsquest team in the UK, bolstered our results in the quarter. The television group posted year-over-year gains in revenue, operating income and cash flow even with reduced political advertising. Lower interest expense and a favorable foreign exchange rate also contributed to earnings growth."
NEWSPAPERS
Newspaper results in the quarter include the SMG (Scottish Media Group) publishing business and the Texas-New Mexico Newspapers Partnership. Total newspaper operating revenues, which include USA TODAY and our UK properties, increased 6 percent to $1.51 billion in the second quarter, versus $1.42 billion in the same quarter of 2002. Operating cash flow rose 5 percent to $495.3 million. Newsprint expense increased 10 percent, reflecting higher year-over-year prices and increased consumption due primarily to the aforementioned acquisitions.
At USA TODAY, advertising revenues were almost even with last year's second quarter results despite substantially lower demand for travel related advertising. Paid advertising pages totaled 1,220 compared with 1,236 in the same quarter of 2002, a 1 percent decline. For the year-to-date, USA TODAY's advertising revenues were slightly ahead of last year and paid pages numbered 2,316 compared with 2,414 last year, a 4 percent decline. USA TODAY's results in the quarter benefited from strong automotive, technology and entertainment advertising.
TELEVISION
In the second quarter, television revenues increased 1 percent to $192.7 million from $191.3 million in the corresponding period in 2002. Television operating income and cash flow each advanced 1 percent and were $95.6 million and $102.2 million, respectively, in the quarter. These positive results were achieved at a time when demand for advertising was affected by the war and diminished political spending.
NON-OPERATING ITEMS
Interest expense for the second quarter was $36.3 million, down from $41.1 million in the same quarter of 2002. Other non-operating income reflects investment and currency gains which offset other non-operating charges, including those for the write-down of minority interest investments in internet businesses.
* * *
At the end of the quarter, Gannett had more than 100 domestic publishing Web sites, including USATODAY.com, one of the most popular newspaper sites on the Web. The company also had Web sites in all of its 19 television markets. In May, Gannett's consolidated domestic Internet audience share was 13 million unique visitors reaching about 10 percent of the Internet audience according to Nielsen//Net Ratings. Newsquest is also an Internet leader in the UK where its network of Web sites attracts more than 15.9 million monthly page impressions from almost 1.7 million unique users.
All references in this release and attachments to "operating cash flow" are to a non-GAAP financial measure. Management believes that use of this measure allows investors and management to analyze and compare the company's performance in a more meaningful and consistent manner. A reconciliation of these non-GAAP amounts to the company's consolidated statements of income is attached.
As previously announced, the company will hold an earnings conference call at 10:00 a.m. EDT today. The call can be accessed via a live Webcast through the Investor Relations section of the company's Web site, www.gannett.com, or listen-only conference lines, by dialing 1-800-915-4836 (in the U.S.) and 1-973-317-5319 (outside the U.S.) at least 10 minutes prior to the scheduled start of the call. Replay of the conference call will be available about two hours after the live call on Tuesday. To access the replay, dial 1-800-428-6051 (in the U.S.) and 1-973-709-2089 (outside the U.S.). The access code for the replay is 297869. Materials related to the call will be available through the Investor Relations section of the company's Web site Wednesday morning.
Gannett Co., Inc. is a leading international news and information company that publishes 100 daily newspapers in the USA, including USA TODAY, the nation's largest-selling daily newspaper. The company also owns in excess of 400 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 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.
For investor inquiries, contact:
Gracia Martore
Senior Vice President and Chief Financial Officer
703-854-6918
gmartore@gannett.com
For media inquires, contact:
Tara Connell
Vice President of Corporate Communications
703-854-6049
tjconnel@gannett.com
# # #
CONSOLIDATED STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)
Thirteen weeks ended % Inc
June 29, 2003 June 30, 2002 (Dec)
Net Operating Revenues:
Newspaper advertising $ 1,115,381 $ 1,045 938 6.6
Newspaper circulation 303,180 293,990 3.1
Television 192,727 191,299 0.7
Other 93,995 81,963 14.7
------------- ------------- ------
Total 1,705,283 1,613,190 5.7
------------- ------------- ------
Operating Expenses:
Cost of sales and operating
expenses, exclusive of
depreciation 856,972 799,255 7.2
Selling, general and
administrative expenses,
exclusive of depreciation 262,917 254,534 3.3
Depreciation 55,078 53,362 3.2
Amortization of intangible
assets 2,174 1,834 18.5
------------- ------------- ------
Total 1,177,141 1,108,985 6.1
------------- ------------- ------
Operating income 528,142 504,205 4.7
------------- ------------- ------
Non-operating income
(expense):
Interest expense (36,334) (41,101) (11.6)
Other 899 (81) ***
------------- ------------- ------
Total (35,435) (41,182) (14.0)
------------- ------------- ------
Income before income taxes 492,707 463,023 6.4
Provision for income taxes 168,400 159,100 5.8
------------- ------------- ------
Net income $ 324,307 $ 303,923 6.7
============= ============= ======
Net income per share-basic $1.21 $1.14 6.1
===== ===== ======
Net income per share-diluted $1.20 $1.13 6.2
===== ===== ======
Dividends per share $0.24 $0.23 4.3
===== ===== ======
CONSOLIDATED STATEMENTS OF INCOME
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars (except per share amounts)
Twenty-six weeks ended % Inc
June 29, 2003 June 30, 2002 (Dec)
Net Operating Revenues:
Newspaper advertising $ 2,121,428 $ 2,015,741 5.2
Newspaper circulation 605,611 593,252 2.1
Television 350,903 358,485 (2.1)
Other 179,586 158,870 13.0
------------- ------------- ------
Total 3,257,528 3,126,348 4.2
------------- ------------- ------
Operating Expenses:
Cost of sales and operating
expenses, exclusive of
depreciation 1,693,594 1,606,371 5.4
Selling, general and
administrative expenses,
exclusive of depreciation 511,488 502,865 1.7
Depreciation 109,307 106,731 2.4
Amortization of intangible
assets 4,004 3,667 9.2
------------- ------------- ------
Total 2,318,393 2,219,634 4.4
------------- ------------- ------
Operating income 939,135 906,714 3.6
------------- ------------- ------
Non-operating income
(expense):
Interest expense (72,443) (69,855) 3.7
Other 5,751 (2,373) ***
------------- ------------- ------
Total (66,692) (72,228) (7.7)
------------- ------------- ------
Income before income taxes 872,443 834,486 4.5
Provision for income taxes 298,300 287,000 3.9
------------- ------------- ------
Net income $ 574,143 $ 547,486 4.9
============= ============= ======
Net income per share-basic $2.14 $2.05 4.4
===== ===== ======
Net income per share-diluted $2.12 $2.04 3.9
===== ===== ======
Dividends per share $0.48 $0.46 4.3
===== ===== ======
BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
Thirteen weeks ended % Inc
June 29, 2003 June 30, 2002 (Dec)
Net Operating Revenues:
Newspaper publishing $ 1,512,556 $ 1,421,891 6.4
Television 192,727 191,299 0.7
------------- ------------- ------
Total $ 1,705,283 $ 1,613,190 5.7
============= ============= ======
Operating Income (net
of depreciation and
amortization):
Newspaper publishing $ 448,476 $ 425,225 5.5
Television 95,587 94,463 1.2
Corporate (15,921) (15,483) (2.8)
------------- ------------- ------
Total $ 528,142 $ 504,205 4.7
============= ============= ======
Depreciation and
Amortization:
Newspaper publishing $ 46,782 $ 45,315 3.2
Television 6,642 6,331 4.9
Corporate 3,828 3,550 7.8
------------- ------------- ------
Total $ 57,252 $ 55,196 3.7
============= ============= ======
Operating Cash Flow (1):
Newspaper publishing $ 495,258 $ 470,540 5.3
Television 102,229 100,794 1.4
Corporate (12,093) (11,933) (1.3)
------------- ------------- ------
Total $ 585,394 $ 559,401 4.6
============= ============= ======
(1) Operating Cash Flow represents operating income for each of the
company's business segments plus related depreciation and
amortization expense. See attachment for reconciliation of
amounts to the Consolidated Statements of Income.
BUSINESS SEGMENT INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
Twenty-six weeks ended % Inc
June 29, 2003 June 30, 2002 (Dec)
Net Operating Revenues:
Newspaper publishing $ 2,906,625 $ 2,767,863 5.0
Television 350,903 358,485 (2.1)
------------- ------------- ------
Total $ 3,257,528 $ 3,126,348 4.2
============= ============= ======
Operating Income (net
of depreciation and
amortization):
Newspaper publishing $ 810,961 $ 769,928 5.3
Television 159,542 167,232 (4.6)
Corporate (31,368) (30,446) (3.0)
------------- ------------- ------
Total $ 939,135 $ 906,714 3.6
============= ============= ======
Depreciation and
Amortization:
Newspaper publishing $ 92,364 $ 90,550 2.0
Television 13,213 12,748 3.6
Corporate 7,734 7,100 8.9
------------- ------------- ------
Total $ 113,311 $ 110,398 2.6
============= ============= ======
Operating Cash Flow (1):
Newspaper publishing $ 903,325 $ 860,478 5.0
Television 172,755 179,980 (4.0)
Corporate (23,634) (23,346) (1.2)
------------- ------------- ------
Total $ 1,052,446 $ 1,017,112 3.5
============= ============= ======
(1) Operating Cash Flow represents operating income for each of the
company's business segments plus related depreciation and
amortization expense. See attachment for reconciliation of
amounts to the Consolidated Statements of Income.
NON-GAAP FINANCIAL INFORMATION
Gannett Co., Inc. and Subsidiaries
Unaudited, in thousands of dollars
"Operating Cash Flow", a non-GAAP measure, is defined as operating
income plus depreciation and amortization of intangible assets.
Management believes that use of this measure allows investors and
management to measure, analyze and compare the cash resources
generated from its business segment operations in a meaningful and
consistent manner. The focus on operating cash flow is appropriate
given the consistent and generally predictable strength of cash flow
generation by newspaper and television operations, and the short
period of time it takes to convert new orders to cash.
A reconciliation of these non-GAAP amounts to the company's operating
income, which the company believes is the most directly comparable
financial measure calculated and presented in accordance with GAAP in
the company's consolidated statements of income, follows:
Thirteen Weeks Ended June 29, 2003
Newspaper Consolidated
Publishing Television Corporate Total
---------- ---------- --------- ------------
Operating
cash flow $ 495,258 $ 102,229 $ (12,093) $ 585,394
Less:
Depreciation (44,608) (6,642) (3,828) (55,078)
Amortization (2,174) - - (2,174)
---------- ---------- --------- ------------
Operating income $ 448,476 $ 95,587 $ (15,921) $ 528,142
========== ========== ========= ============
Thirteen Weeks Ended June 30, 2002
Newspaper Consolidated
Publishing Television Corporate Total
---------- ---------- --------- ------------
Operating
cash flow $ 470,540 $ 100,794 $ (11,933) $ 559,401
Less:
Depreciation (43,481) (6,331) (3,550) (53,362)
Amortization (1,834) - - (1,834)
---------- ---------- --------- ------------
Operating income $ 425,225 $ 94,463 $ (15,483) $ 504,205
========== ========== ========= ============
Twenty-six Weeks Ended June 29, 2003
Newspaper Consolidated
Publishing Television Corporate Total
---------- ---------- --------- ------------
Operating
cash flow $ 903,325 $ 172,755 $ (23,634) $ 1,052,446
Less:
Depreciation (88,360) (13,213) (7,734) (109,307)
Amortization (4,004) - - (4,004)
---------- ---------- --------- ------------
Operating income $ 810,961 $ 159,542 $ (31,368) $ 939,135
========== ========== ========= ============
Twenty-six Weeks Ended June 30, 2002
Newspaper Consolidated
Publishing Television Corporate Total
---------- ---------- --------- ------------
Operating
cash flow $ 860,478 $ 179,980 $ (23,346) $ 1,017,112
Less:
Depreciation (86,883) (12,748) (7,100) (106,731)
Amortization (3,667) - - (3,667)
---------- ---------- --------- ------------
Operating income $ 769,928 $ 167,232 $ (30,446) $ 906,714
========== ========== ========= ============
News Release
Tuesday, July 15, 2003
Gannett Co., Inc. Releases June Statistical Report
McLEAN, VA - Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the sixth period ended June 29, 2003 increased 3 percent. 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 1 percent.
Pro forma (assuming that all properties presently owned were owned in both periods) newspaper advertising revenues in June were up 5 percent compared with the same period in 2002 on a 2 percent increase in ROP volume and a 9 percent advance in preprint distribution. If the exchange rate had remained constant year-over-year, pro forma newspaper advertising revenues would have risen 3 percent.
Pro forma classified revenues advanced 7 percent in the June period on a 3 percent increase in ad volume. Employment revenues declined 3 percent from the same period last year. Classified real estate revenues advanced 16 percent, and automotive increased 6 percent. Overall, the company's classified results from Newsquest were substantially stronger than its domestic results.
Pro forma local advertising revenues rose 4 percent in the June period on a 1 percent decline in 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., newspaper gains were achieved in the telecommunications, financial and home improvement categories while there was softness in department stores, consumer electronics, furniture and grocery ad spending.
Pro forma national advertising revenues increased 2 percent on a 15 percent increase in ad volume. National volume at the company's local domestic newspapers rose 19 percent in the period compared with the same interval in 2002. At USA TODAY, advertising revenues were 1 percent lower on a 2 percent decrease in paid ad pages to 408 from 418. For the month, automotive, technology and advocacy advertising were strong but soft travel and retail advertising offset these gains. For the year-to-date, USA TODAY's paid pages numbered 2,316 versus 2,414 last year while ad revenues were slightly ahead of last year.
Television revenues declined 4 percent in the period. Local revenues rose 4 percent while national revenues declined 14 percent. For comparison purposes, television revenues increased 16 percent in June of 2002.
(more)
In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for May from Nielsen//Net Ratings. In May, Gannett's domestic Websites had over 13 million unique visitors reaching 10 percent of the Internet audience.
The pro forma advertising and circulation revenue statistics include the results of the SMG (Scottish Media Group) publishing business and Texas-New Mexico Newspapers Partnership as if they had been owned in both years. Ad linage for Newsquest is 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 100 daily newspapers in the USA, including USA TODAY, the nation's largest-selling daily newspaper. The company also owns in excess of 400 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 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: Gracia Martore
Senior Vice President and Chief Financial Officer
703-854-6918
gmartore@gannett.com
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
Period 6 (June 2, 2003 - June 29, 2003)
%
2003 2002 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 145,088,000 $ 139,148,000 $ 5,940,000 4
National 61,800,000 60,422,000 1,378,000 2
Classified 164,185,000 153,442,000 10,743,000 7
------------- ------------- ------------ ----
Total Advertising $ 371,073,000 $ 353,012,000 $ 18,061,000 5
Circulation 97,312,000 96,596,000 716,000 1
Other revenue 30,516,000 29,167,000 1,349,000 5
Television 57,339,000 59,593,000 (2,254,000) (4)
------------- ------------- ------------ ----
Total Revenue $ 556,240,000 $ 538,368,000 $ 17,872,000 3
============= ============= ============ ====
VOLUME:
Newspaper Inches:
Local 2,955,146 2,985,018 (29,872) (1)
National 371,004 323,278 47,726 15
Classified 4,838,741 4,707,381 131,360 3
------------- ------------- ------------ ----
Total ROP 8,164,891 8,015,677 149,214 2
============= ============= ============ ====
Preprint Distribution
(in thousands) 845,085 778,603 66,482 9
============= ============= ============ ====
NET PAID CIRCULATION:
Morning (w/USAT) 6,815,904 6,911,328 (95,424) (1)
Evening 1,227,277 1,286,863 (59,586) (5)
------------- ------------- ------------ ----
Total Daily 8,043,181 8,198,191 (155,010) (2)
============= ============= ============ ====
Sunday 6,823,627 6,920,476 (96,849) (1)
============= ============= ============ ====
Year-to-Date through June 29, 2003
%
2003 2002 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 884,245,000 $ 853,029,000 $ 31,216,000 4
National 349,345,000 339,598,000 9,747,000 3
Classified 912,665,000 872,978,000 39,687,000 5
-------------- -------------- ------------- ----
Total Advertising $ 2,146,255,000 $ 2,065,605,000 $ 80,650,000 4
Circulation 613,914,000 609,161,000 4,753,000 1
Other revenue 183,546,000 169,575,000 13,971,000 8
Television 350,903,000 358,485,000 (7,582,000) (2)
-------------- -------------- ------------- ----
Total Revenue $ 3,294,618,000 $ 3,202,826,000 $ 91,792,000 3
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 18,300,949 18,587,748 (286,799) (2)
National 2,005,828 1,853,925 151,903 8
Classified 28,955,298 27,990,372 964,926 3
-------------- -------------- ------------- ----
Total ROP 49,262,075 48,432,045 830,030 2
============== ============== ============= ====
Preprint Distribution
(in thousands) 5,373,553 4,841,570 531,983 11
============== ============== ============= ====
NET PAID CIRCULATION:
Morning (w/USAT) 7,106,670 7,137,333 (30,663) (0)
Evening 1,276,116 1,313,629 (37,513) (3)
-------------- -------------- ------------- ----
Total Daily 8,382,786 8,450,962 (68,176) (1)
============== ============== ============= ====
Sunday 7,013,148 7,067,515 (54,367) (1)
============== ============== ============= ====
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 SMG Publishing (acquired in
April 2003). 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.
GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
2nd Quarter 2003 (March 31 - June 29, 2003)
%
2003 2002 CHANGE CHANGE
REVENUES:
Advertising:
Local $ 462,667,000 $ 442,205,000 $ 20,462,000 5
National 183,522,000 177,000,000 6,522,000 4
Classified 469,225,000 452,641,000 16,584,000 4
-------------- -------------- ------------- ----
Total Advertising $ 1,115,414,000 $ 1,071,846,000 $ 43,568,000 4
Circulation 303,254,000 302,035,000 1,219,000 0
Other revenue 94,027,000 87,919,000 6,108,000 7
Television 192,727,000 191,299,000 1,428,000 1
-------------- -------------- ------------- ----
Total Revenue $ 1,705,422,000 $ 1,653,099,000 $ 52,323,000 3
============== ============== ============= ====
VOLUME:
Newspaper Inches:
Local 9,603,710 9,686,458 (82,748) (1)
National 1,072,378 981,929 90,449 9
Classified 15,194,403 14,796,939 397,464 3
-------------- -------------- ------------- ----
Total ROP 25,870,491 25,465,326 405,165 2
============== ============== ============= ====
Preprint Distribution
(in thousands) 2,804,573 2,535,804 268,769 11
============== ============== ============= ====
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 SMG Publishing (acquired in
April 2003). 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.
Gannett Online Internet Audience
May 2003
Nielsen//NetRatings
Home/Work Panel Combined
Unique Visitors Percentage Reach of
Per Month Internet Audience
Gannett Online 13,334,000 10.0%