Meredith Profits Up, Revenue Flat After Busy FY 2015
Mag group’s ad revenue up 3 percent, led by acquisitions, partnerships.
The company announced results for its fiscal 2015 on Thursday, noting flat revenue ($1.1 billion) and an 8-percent increase in profit ($123 million), though just a 3-percent increase excluding special items.
Total advertising revenue was up 3 percent on the strength of acquisitions of Shape, Selectable Media and Mywedding.com, and a partnership with Martha Steward Living. Digital continues to play a larger role at the company as well, up 50-percent from last year, and now accounting for almost a quarter of the company’s $500 million in ad sales.
Circulation, tallying about a third of the group’s revenue, fell 4 percent over the past 12 months. The additions of Shape and the MSLO titles weren’t enough to completely offset the losses from Ladies Home Journal, which moved to a quarterly last year, the company says.
Ancillary businesses like brand licensing and Meredith Xcelerated Marketing both posted higher profits in FY 2015 as well.
"We're pleased with our growth in operating profit, led by contributions from our newly acquired businesses, along with record digital and brand licensing performance," says Meredith National Media Group President Tom Harty, in a statement. "We will continue execution of the innovative and successful strategies that are driving rapid growth in our digital operations, and actively explore opportunities to add to our portfolio."
Overall, Meredith Corp. boosted revenue 9 percent to $1.6 billion. The company’s stock was up about half a point, as of press time Thursday.