By: Staff Reports
Internet Revenue May Reach $100 Million Next Year
(Mediaweek Online) Gannett Co. expects to finish 2000 with record
revenues and profits, and looks for more of the same in 2001,
executives said Wednesday.
Speaking at the Credit Suisse First Boston Media Conference,
Gannett President and CEO Douglas H. McCorkindale said 2001
“promises to be another record year” despite higher newsprint
costs and the absence of advertising boosts enjoyed this year
from the Olympics, elections and millennium shift. Those
comparisons will hit particularly hard in the first half.
Gannett expects the price of newsprint, the largest newspaper
cost, after payroll, to rise 15% to 20% next year as its
consumption decreases 2% to 4%.
Gannett, publisher of 99 U.S. and 15 U.K. dailies and 22 U.S. TV
stations, also is assuming the following about its business for
Newspaper ad volume flat to 4% higher, depending on category,
with rates averaging 3% higher.
Circulation flat to 1% higher on rates up 1% to 2%.
Pay rates up 3% to 4%; employment flat to down 1%.
TV revenue flat; costs up slightly.
USA Today ad pages 4% to 5% higher; rates up about 3%.
McCorkindale agreed with First Call estimates showing diluted
earnings per share from continuing operations and before a net,
after-tax non-operating gain from the sale of cable assets,
around $3.60 to $3.64 for 2000.
Gannett expects Internet losses of “a couple of million dollars”
this year on revenue of $60 million to $65 million, McCorkindale
said. Internet operations could finish 2001 with a modest loss,
or profit, on revenue that “may approach” $100 million, he said.
Tom Curley, president and Publisher of USA Today, said the
paper will finish 2000 with record advertising revenue, which he
expects again in 2001.
Copyright 2000, Editor & Publisher.