Gannett November Revenues Fall 4.6% On Big Classifieds Drop

By: E&P Staff Gannett Co. Inc. said Tuesday its November operating revenues declined 4.6% from the same period a year ago, a fall propelled by huge declines in U.S. classified newspaper revenues, including a 28.4% plunge in real estate and a 23.5% collapse in help-wanted.

Results for Gannett's "eleventh period" ended Dec. 2 would have been even worse were it not for the strengthening of the British pound that affected its big Newsquest chain in the United Kingdom. Had the exchange rate remained constant year-over-year, Gannett said, pro forma operating revenues would have fallen 5.8% in the period.

Similarly, the exchange rate put a relative shine on the advertising results: Had the pound held constant for the year, total pro forma newspaper advertising would have been 5.4% lower.

Gannett said its local ad revenue increased 1.6% in November, or 1% with a constant currency.

Overall classified plunged 11.2% in the period, or 13.7% on a constant currency basis.

Gannett said real estate classified revenue fell 17%, help-wanted was down 14.4%, and automotive was off 10%.

Classified results at Newsquest in the UK somewhat skewed the period's numbers, since they were better than in the U.S. community newspapers, Gannett said.

At Gannett's community newspapers, pro forma classified revenues plummeted 18.4% in November on declines of 28.4% in real estate; 23.5% in employment; and 8.3% in automotive.

National ad revenues fell 3.5% for the period, Gannett said.

At USA Today, advertising revenues were down 1.6% on paid ad pages of 364 against 392 in the same period last year. USA Today was, however, fighting a strong comparable. In the November 2006 period, its ad revenue was up 20.1% from the year before.

Gannett said strong growth in the automotive, financial, advocacy, packaged goods and restaurant categories at USA Today was offset by declines in the technology, entertainment, travel, retail and pharmaceutical categories.

Gannett said its broadcasting revenue were down 19.2%, primarily on much lower political advertising.