January Ad Revenues Rise at Gannett

By: E&P Staff Benefiting from newspaper advertising and television revenue gains, Gannett Co. Inc. reported a 4.6% increase in pro forma operating revenues for the first period ending Feb. 1, 2004, the company announced today.

Pro forma newspaper advertising revenues (assuming that all properties presently owned were owned in both periods) in January were up 6.1% compared with the same period in 2003 on a 2.4% increase in ROP (run of press) volume and a 2.6% advance in preprint distribution.

Classified revenues increased 8.5% in the first period on a 3.1% increase in ROP ad volume, the company said. Employment revenues were up 9.7%, while real estate and automotive rose 7.7% and 3.1%, respectively.

Local advertising revenues advanced 5.1% on almost flat ROP ad volume. Small and medium-sized advertisers in its domestic newspapers outpaced the revenue performance of its largest advertisers. Local ad revenue gains were seen in the financial, telecommunications, furniture and home improvement categories in the U.S. Yet department store, consumer electronics and grocery categories remained soft.

Because of a 13.5% gain in ad volume, pro forma national advertising revenues grew 2.7%. National volume at Gannett's local domestic newspapers increased 17.2%. However, USA Weekend, the weekly newspaper magazine, experienced substantially lower national ad revenues during that period, the company said.

Advertising revenues were up 2.2% at USA Today. Retail, entertainment and packaged good categories were strong for the first period while travel, technology and automotive categories declined.