The Meredith Corporation announced fiscal first-quarter 2014 revenue increases, while earnings dipped slightly. The female-centric media and marketing company is relying on growth from its digital side, advertising revenue and the launch of the Allrecipes magazine to propel its full-year outlook.
Meredith’s total revenues inched up 1 percent to $356 million from $354 million in the same period last year. Year-over-year earnings per share dipped to $0.53 from $0.55 for the first quarter.
Stephen M. Lacy, Meredith chairman and CEO, remained optimistic saying, “We’re off to a strong start in fiscal 2014,” in a statement.
Lacy mostly championed record revenue and profit performance of the company’s Local Media Group, which grew total revenues 3 percent to $90 million. Non-political advertising revenues also increased 3 percent to $64 million thanks to strong performances from television stations.
“Our record revenue performance—achieved in a non-political quarter—speaks to the fundamental strength of our television broadcasting business,” says Local Media Group President Paul Karpowicz, in a statement.
Digital advertising revenues also spurred growth showing a record high 12 percent increase for the quarter.
“We continued to successfully execute our Total Shareholder Return (TSR) strategy,” Lacy says. “ Investor response has been strong with our share price more than doubling since we launched our TSR program [two years ago].”
Next month, Meredith will launch its first digital brand print extension with Allrecipes magazine. In its first year, the title will publish six issues and have a rate base of 500,000.
Digital traffic, overall, averaged a first-quarter record of 47 million unique visitors while digital orders for print magazine subscriptions grew 7 percent to 1.2 million year-over-year.
Looking ahead, Meredith projects fiscal second-quarter earnings per share increase in the $0.65 to $0.70 range, while the fiscal full-year earnings outlook is expected to range from $2.60 to $2.95.