Gannett Co., Inc. Releases July Statistical Report

MCLEAN, Va.--(BUSINESS WIRE)--Gannett Co., Inc. (NYSE: GCI) reported today that total pro forma operating revenues for the seventh period ended August 3, 2008 declined 12.3 percent compared with the same period in 2007. For comparison purposes, the exchange rate of the British pound decreased slightly compared to last year. If the exchange rate had remained constant year-over-year, total pro forma operating revenues would have declined 12.0 percent.

Publishing advertising revenues in July were 16.7 percent lower compared with the same period a year ago. On a constant currency basis publishing advertising revenues would have declined 16.4 percent.

Retail advertising revenues declined 10.5 percent in the seventh period. In the U.S., across all products, the decline was led by softness in the telecommunications, department stores, home improvement and furniture categories.

Classified revenues declined 25.2 percent in July. Real estate revenues were 37.9 percent lower, employment revenues were down 29.1 percent and automotive revenues declined 21.1 percent. On a constant currency basis, real estate revenues would have declined 37.5 percent, employment revenues would have been down 28.6 percent and automotive revenues would have been 20.8 percent lower. For U.S. community publishing, classified revenues were down 25.4 percent in the seventh period comprised of declines of 34.0 percent in real estate revenues, 32.8 percent in employment revenues and 19.7 percent in automotive revenues. Classified revenues at our operations in the UK declined 24.4 percent, in pounds, reflecting declines of 44.2 percent in real estate, 19.4 percent in employment and 24.5 percent in automotive.

National advertising revenues in the seventh period were 9.2 percent lower. At USA TODAY, advertising revenues declined 5.5 percent on paid ad pages of 242 versus 276 last year. At USA TODAY, the advocacy, home and building and packaged goods categories were positive in the seventh period while the telecommunications, pharmaceutical, technology, automotive and retail categories lagged last year.

Broadcasting revenues, which include Captivate, were 6.1 percent lower. Television revenues were down 5.5 percent in the period as local and national revenues declined 6.5 percent and 5.2 percent, respectively. A $5.1 million increase in net political revenue was more than offset by weakness in other categories, particularly automotive. Based on where we are today, we would expect television revenues for the third quarter of 2008 to be up in the mid to high-single digits.

In addition to the revenue and statistical summary, attached is a chart which shows the consolidated Gannett Online audience share for July from Nielsen//Net Ratings. In July, Gannett’s domestic Web sites had 24.5 million unique visitors reaching 14.9 percent of the Internet audience.

On July 8, 2008, Gannett announced that it acquired from Tribune Company and The McClatchy Company, in separate transactions, their minority ownership interests in ShopLocal LLC. Pro forma other revenue reflects the results for ShopLocal for all periods presented.

To conform with current year presentation, the company's equity share of operating results for 2007 from its newspaper partnerships, including Tucson, which participates in a joint operating agency, the California Newspapers Partnership and the Texas-New Mexico Newspapers Partnership have been reclassified from "Other revenue" and are reflected in a separate line in the Non-Operating section of the Statement of Income titled "Equity income (losses) in unconsolidated investees, net." Other revenue is now comprised principally of commercial printing revenues and revenue from PointRoll and ShopLocal.

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 85 daily newspapers in the USA, including USA TODAY, the nation's largest-selling daily newspaper. The company also owns nearly 900 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 nearly 300 titles, including 17 daily newspapers, and a network of prize-winning Web sites. Gannett also operates 23 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.

GANNETT CO., INC.
REVENUE & STATISTICAL SUMMARY
				Period 7 (June 30, 2008 - August 3, 2008)													Year-to-Date through August 3, 2008
													%													%
				2008			2007			CHANGE			CHANGE				2008			2007			CHANGE			CHANGE
REVENUES:
Advertising:
	Retail		$	157,930,000		$	176,433,000		$	(18,503,000	)		(10.5	)		$	1,144,537,000		$	1,248,719,000		$	(104,182,000	)		(8.3	)
	National			50,265,000			55,379,000			(5,114,000	)		(9.2	)			395,100,000			426,766,000			(31,666,000	)		(7.4	)
	Classified			131,836,000			176,354,000			(44,518,000	)		(25.2	)			1,005,481,000			1,236,000,000			(230,519,000	)		(18.7	)
	Total Advertising		$	340,031,000		$	408,166,000		$	(68,135,000	)		(16.7	)		$	2,545,118,000		$	2,911,485,000		$	(366,367,000	)		(12.6	)
	Circulation			108,710,000			111,632,000			(2,922,000	)		(2.6	)			723,882,000			741,672,000			(17,790,000	)		(2.4	)
	Other revenue			36,678,000			38,134,000			(1,456,000	)		(3.8	)			257,522,000			266,448,000			(8,926,000	)		(3.3	)
	Broadcasting			61,017,000			64,957,000			(3,940,000	)		(6.1	)			423,765,000			452,682,000			(28,917,000	)		(6.4	)
	Total Revenue		$	546,436,000		$	622,889,000		$	(76,453,000	)		(12.3	)		$	3,950,287,000		$	4,372,287,000		$	(422,000,000	)		(9.7	)
NET PAID CIRCULATION:
	Morning (w/USAT)			6,527,534			6,800,274			(272,740	)		(4.0	)			6,856,313			7,124,504			(268,191	)		(3.8	)
	Evening			416,198			446,974			(30,776	)		(6.9	)			438,993			466,219			(27,226	)		(5.8	)
	Total Daily			6,943,732			7,247,248			(303,516	)		(4.2	)			7,295,306			7,590,723			(295,417	)		(3.9	)
	Sunday			5,413,055			5,685,397			(272,342	)		(4.8	)			5,583,516			5,884,971			(301,455	)		(5.1	)
Note:				To conform with current year presentation, the company's equity share of operating results for 2007 from its newspaper partnerships, including Tucson, which participates in a joint operating agency, the California Newspapers Partnership and the Texas-New Mexico Newspapers Partnership have been reclassified from "Other revenue" above and are reflected in a separate line in the Non-Operating section of the Statement of Income (Loss) titled "Equity income (losses) in unconsolidated investees, net."  Other revenue is now comprised principally of commercial printing revenues and revenue from PointRoll and ShopLocal.   The above revenue amounts and statistics have been restated to include all companies presently owned.  In period 7, 2008, Gannett increased their level of ownership in ShopLocal to 100% from 42.5%.  Revenues for ShopLocal have been reflected above on a pro forma basis, as if this business had been 100% owned and consolidated for all periods presented.  Prior to the acquisition, the company's equity share of operating results from ShopLocal was reported as "Equity income (losses) in unconsolidated investees, net."  In May 2007, Gannett sold the Norwich (CT) Bulletin, the Rockford (IL) Register Star, the Observer-Dispatch in Utica, NY and The Herald-Dispatch in Huntington, WV.  In May 2007, Gannett contributed the Chronicle-Tribune in Marion, IN to the Gannett Foundation.  All revenue amounts and statistics related to the sold and donated properties are excluded from all periods presented.   Circulation volume statistics from the company's newspaper in Tucson, which participates in a joint operating agency, are included above.   Newsquest is a regional newspaper publisher in the United Kingdom with nearly 300 titles, including paid and unpaid daily and non-daily products. Circulation volume statistics for Newsquest's 17 paid-for daily newspapers are included above.  Circulation volume statistics for the Sunday Herald are included above in the Sunday statistics.  Circulation volume statistics for Newsquest's unpaid daily and non-daily publications are not reflected above.     Circulation volume statistics for non-daily products, including Gannett Healthcare Group and Clipper Magazine are not reflected above.   Effective Period 5, 2008, due to certain changes in delivery times, Gannett has reclassified some net paid circulation figures from evening to morning.  All prior periods have been restated to conform to the new classification.

Gannett Online Internet Audience
July 2008
Nielsen//Net Ratings
Home/Work Panel Combined
		Unique Visitors		Percentage Reach of
		Per Month		Internet Audience
Gannett Online		24,494,000		14.9%