Digital Soars, Print Improves For Meredith in Second Quarter
Despite growth, shifting to non-advertising revenue still a priority.
Total revenue jumped 9 percent to $367 million for Meredith Corp in the second quarter of fiscal 2011, driven by strong advertising growth and integrated marketing services. Total advertising revenue for the first six months of fiscal 2011 jumped 11 percent to $420 million (with total revenue of $538 million), driven in large part by political advertising.
The National Media Group, which includes Meredith magazines, saw revenue grow 3 percent to $269 million, with total advertising revenue up 5 percent to $123 million (driven by pharmaceutical, household supplies and media and entertainment categories) and online advertising revenue up 30 percent (driven by parenthood, retail and consumer packaged goods categories, including multi-platform packages from clients such as Kraft Foods and Wal-Mart).
Circulation revenue fell 4 percent due to changes in magazine frequency and the repositioning of the Special Interest Media group, although Meredith says magazine readership grew 2 percent over the same period last year, according to Mediamark Research and Intelligence.
Meredith Integrated Marketing grew 14 percent thanks to expansion of digital and customer and CRM services for national clients.
"Increasing non-advertising revenues is a strategic priority," said Meredith CEO Stephen Lacy in a statement. "Given current program expansion commitments, along with a robust pipeline of RFPs for new business, we expect revenue growth at Meredith Integrated Marketing to continue in early calendar 2011."