Hanley Wood Sees Single Digit Revenue Increase While Earnings Jump 20 Percent in First Half
Magazines and data remain challenged; events and custom marketing are growing.
Hanley Wood saw improvement "marginally overall," with revenue up in the high single digits and earnings up 20 percent in the first half of 2011 ("albeit off a very depressed base," according to CEO Frank Anton).
Magazines and data remain challenged, while events and custom marketing are growing, according to Anton. "The so-called double dip slowdown for housing has hurt many of our magazines and our data business...or at least slowed their recoveries," he tells FOLIO: However, "Almost all of the shows will outperform 2010."
Meanwhile, Hanley Wood's custom marketing business is having its best year ever, according to Anton. "The custom business is being driven by solid spending by our biggest account (FedEx) and about a 30 percent increase among endemic advertising customers," he adds. "The programs include everything from lead gen services to website development to distance learning courses to custom magazines to meeting planning."
On the digital side, Hanley Wood was up 20 percent in revenue in the first half. The company's Architect magazine, which debuted in 2006 and was one of Hanley Wood's largest launches, posted a 100 percent increase in ad revenue since becoming the official magazine for the American Institute of Architects last year.
While Anton wouldn't comment on Standard & Poor's previously dropping its credit rating of Hanley Wood based on concerns that the company will be "unable to meet financial covenant step-downs in early 2012 without an amendment, a refinancing or repayment of the revolving credit facility, or an equity cure from sponsors," he did say that the second half of the year will be "more or less a carbon copy of the first half, save perhaps for print advertising which could be somewhat weaker in QIII and QIV."