By: Jennifer Saba Speaking at the Credit Suisse First Boston Media Conference in New York today, Gannett executives said the company would generate record revenues in 2005 despite a challenging advertising environment. Online ad revenue for the company this year shot up over 52% and now represents 7% of the company's total revenue.
But the first question for Craig Dubow, Gannett's president and CEO, following the presentation concerned the company's interest in acquiring suddenly up for grabs Knight Ridder. Dubow answered: "We are taking a hard look at it," but declined to elaborate. He also said the company was looking at possible acquisitions in England.
Overall, Dubow, said: "I am encouraged by the opportunity I see in our business. At Gannett, we no longer operate just in the newspaper or television business. We are a vital part of the ever-expanding news and information business and it presents a substantial opportunity for us."
The company's non-dailies grew both in terms of revenue and number of products in 2005. Gannett now has more than 1,000 non-daily publications.
Craig Moon, president and publisher of USA Today, said that despite an increase in its single copy price in 2004, circulation volume has held up during the past two Publisher's Statements, and he said the paper now delivers more affluent readers.
Gracia Martore, senior vice president and chief financial officer, said the company expects fourth quarter earnings to fall within the range of most analysts' estimates of $1.40 to $1.44 per diluted share. Martore on the company's operating assumptions for 2006: "The company expects modest growth in newspaper ad demand based on current conditions."
Some ad estimates for 2005 at Gannett: Total up 3.4%, classified up 2.45%, national down 1.9%.
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