Folio: Wire | 5.10.07
The Knot Publishing Revenues Flat
The Knot, Inc. a lifestyle media company with a number of Web sites and magazines targeting couples planning their weddings and future lives together, posted a one percent increase in revenues from publishing properties for the first quarter. The publishing and other segment generated $3.9 million in revenue for the quarter, compared to $3.8 million reported last year.
Gross profit margins for publishing was approximately 61 percent for the first three months of the year. Online sponsorships and revenues were up 38 percent over 2006, topping $10.7 million. National and local online ad revenues were $3.5 million and $7.3 million, respectively, compared to $2.7 million and $5.1 million for the corresponding period in 2006.
Net revenues for the company rose 43 percent to $21.0 million from $14.8 million in 2006. Total operating expenses were $15.2 million and income from operations topped $1.7 million. Net income closed the quarter at $1.6 million.
Advanstar Revenue on the Rise in First Quarter
Advanstar Communications’ pending sale to Veronis Suhler Stevenson is expected to close in the second quarter, as the company’s revenues jumped four percent in the first quarter of the year, according to the company’s first quarter earnings report.
Revenues topped $110.7 million for the quarter compared to the same period last year, largely due to 10 percent growth in the company’s Fashion & Licensing segment and a four percent increase in the Powersports & Automotive segment. Life Sciences posted a five percent decline.
Adjusted EBITDA in the first quarter increased nine percent to $45.3 million from $41.7 million in 2006. Operating income jumped 33 percent in the quarter to $40.7 million while net income increased 64 percent to $24.8 million. Cash used in operations was $22.2 million compared to $18.8 million in the same quarter of 2006, due primarily to a first quarter payment of $28.0 million for the settlement of a future contingent earn-out for the acquisition of the Project tradeshow.
Paste Wins Six Gamma Awards
Independent entertainment magazine Paste was the recipient of five GAMMA Awards this week, including the top honor, the Grand GAMMA Award. The GAMMAs, distributed by the Magazine Association of the Southeast, recognize excellence in magazines in the region. Paste also won the gold award for Best Design, Best Cover, Best Single Issue and General Excellence. It received a silver award for Best Feature.
Click here to see a complete list of GAMMA winners.
Show Technology Productions Acquires Two
DMG World Media Events San Antonio-based Show Technology Productions purchased Scottsdale Spring Home & Garden Show and the Phoenix Home Improvement & Garden Show from dmg world media, an international event producer and publisher. These two events complete dmg’s divestiture of its six consumer home shows. Corporate Solutions, an event and tradeshow M&A brokerage firm, represented dmg in the transaction. Terms of the sale were not disclosed. Show Technology Productions, already a producer of home and garden events, has been serving the market for 15 years. "This acquisition is part of an expansion plan that has been in the works for several years now. We are very excited to bring our brand of Home and Garden Shows to the Arizona market," said Steven Pichichero, president of Show Technology Produtions, in a statement.
Penton Extends Mix Brand to Korea
Penton Media’s Mix magazine has launched Mix Korea, a newly licensed version of the magazine published under contract with Joeunsory Books. The audio industry publication is distributed in more than 80 countries and has an international circulation of more than 50,000.
Town & Country Heads to Japan
Hearst Magazines International has partnered with Tokyo, Japan-based International Luxury Media Co., Ltd. to co-brand Town & Country with Japanese affluent lifestyle title
SEVEN SEAS starting August 20.
SEVEN SEAS, a monthly membership magazine, will celebrate its 20th anniversary by partnering with Town & Country and will incorporate the Hearst magazine’s editorial and photography in its pages. BusinessWeek To Launch in Israel BusinessWeek and Tel-Aviv-based Hirsh Media Ltd. have partnered to publish a Hebrew language edition of BusinessWeek. The first issue of the bi-weekly is slated for September 2007 and will be available via subscription and newsstand. Content will consist of selected material from BusinessWeek and BusinessWeek.com and also from local editorial coverage written by Hirsh Media journalists.
Playboy Publishing Group Revenues Down Slightly in First Quarter
Playboy Enterprises’ publishing operations Group saw revenues decrease one percent to $23.3 million in the first quarter 2007 compared to revenues of $23.5 million reported in the same period in 2006. Operating loss was $2.4 million in the first quarter, comparable to losses reported in the same period last year. Publishing revenues accounted for 27 percent of total company revenues of $85.4 million.
Playboy magazine revenues remained flat for the quarter at $19.2 million, due to a 22 percent increase in advertising sales which was offset by an eight percent decrease in circulation revenues. Although special issue sales were down for the quarter, this was offset by revenue gains generated from international circulation, which saw an increase of 12 percent in revenues. The company reported that lowered manufacturing and overhead costs will benefit the company in the second half of the year and predicts second quarter ad pages to increase by six percent, and ad revenue for the second quarter to decline two percent.
The first quarter financial results remain consistent with the Publishing Group’s reported earnings over the past few years, which continue to show slight revenue losses. Enterprise operating income for the first quarter, however, saw a 10 percent increase to $3.9 million, while revenues saw a four percent jump from $82.1 million reported in the same period last year. Playboy credits the rise in revenue to its Licensing business which posted $11.2 million in revenues in the quarter, a 51 percent increase over the same period last year.
The company’s online/mobile revenues also showed progress, up two percent to $15.7 million, accounting for 18 percent of the company’s overall revenues.
Playboy Publishing Group Net Revenues
Domestic Magazine Subscription
Domestic Magazine Newsstands
Domestic Magazine Advertising
Total Domestic Magazine
Special Editions and Other
Total Publishing Revenue
Source: Playboy Enterprises Inc. Condensed Consolidated Statements of Operations