This summary is based on the third quarter fiscal 2007 earnings call conducted by Gannett Company, Inc. (GCI: chart) on October 17, 2007.

Management:

President, CEO: Craig Dubow
CFO: Gracia Martore

Key Investors Issues

- EPS were $1.01 a share compared to $1.09 a share last year
- Net income was $234 million compared to a profit of $261.4 million in the year-earlier quarter.
- Revenue fell 3.8% to $1.81 billion.

Third Quarter Highlights

Earnings per share from continuing operations were $1.01 compared with $1.08 per share in the third quarter of 2006.

The company took $14.5 million in severance expenses and facility consolidation costs related to a number of efficiency efforts in the UK and U.S.

- Results reflected an improved picture in the UK, digital growth, and strong fiscal discipline. However, the company was also unfavorably impacted by the difficult advertising environment and the relative absence of political advertising.
- On the upside, operations in the UK showed steady improvement.
- Online initiatives companywide contributed positively to results.
- Broadcasting revenue, excluding the effect of lower political advertising, grew due in part to Captivate as well as to online growth. But domestic publishing properties were hindered by the slowdown in real estate - particularly in Florida and the West where the company has a considerable presence.

The company completed the divestiture of five of its newspaper properties in May of 2007.

- Operating results for the third quarter and year-to-date exclude results from these properties which have been reclassified to income from discontinued operations.
- Reported results for the current quarter and year-to-date include KTVD-TV in Denver and WATL-TV in Atlanta which the company acquired in the third quarter of 2006.

Total operating revenues were $1.81 billion compared to $1.88 billion in the third quarter of 2006.

The results reflect softer advertising demand at domestic community newspapers mitigated in part by stronger results at Newsquest in the UK.

- The broadcasting segment benefited from solid non-political ad growth and revenue growth at Captivate and online. However, revenue was down overall due to less political advertising compared to the third quarter of 2006.
- On a pro forma basis, assuming Gannett owned the same complement of properties in the third quarters of 2007 and 2006, total operating revenues would have been 4% lower.

Operating cash flow, defined as operating income plus depreciation and amortization, was $473.1 million.

- Net income was $234 million compared to $256.2 million for the same period in 2006.
- Reported operating expenses totaled $1.41 billion, down 1.9% from the third quarter a year ago. The decline reflects continued cost control efforts and lower newsprint expense offset partially by the television station acquisitions, severance and accelerated depreciation expenses related to a number of efficiency efforts in the U.S. and the UK, and the higher exchange rate for the British pound.

- On a pro forma basis, total operating expenses were 2.1% lower.
- Corporate expenses totaled $17.8 million, a decline of 8.2% from the $19.4 million reported in the third quarter of 2006.
- Average shares outstanding totaled 232,698,000 compared with 236,234,000 in 2006''s third quarter.
- Approximately 1.1 million shares were repurchased and 2.8 million shares year-to-date.

Newspaper segment operating revenues totaled $1.62 billion compared to $1.69 billion in the third quarter a year ago.

- Advertising revenues totaled $1.19 billion, a 5.6% decline.
- Local advertising revenues were down 3.9%, national advertising revenues were 4.1% lower and classified revenues declined 7.7%.

Results for UK operations, Newsquest, were stronger than U.S. operations.