Meredith Reports Earnings Increase in the Second Quarter (posted 1/23)
Publishing earnings decline slightly, but online advertising is up.
Meredith Corp., publisher of Better Homes and Gardens, Family Circle and other magazines, reported that its net earnings in the second quarter of its fiscal year, which ended December 31, increased 20 percent to $35 million. Revenues for the quarter were up 5 percent to $406 million, which included advertising revenue growth of 8 percent bolstered by strong performance at the company’s television stations.
For the first six months of the year, Meredith’s earnings increased 18 percent from a year ago to $66 million. Revenue increased 3 percent to $802 million with advertising revenues up 7 percent to $496 million.
Publishing Sector See Slight Decline, But Online Revenue is Up
Operating profit for Meredith’s publishing division was $33.2 million for the second quarter, down from $37.2 million a year earlier. Revenue was $300.1 million for the quarter, down from $301.4 million in the same period in 2005. Operating profit for the first six months of the year was $81.6 million, down from $84.9 million a year ago. Revenues for the first six months were $613.8 million, down from $619.9 million.
But the publishing’s online advertising revenue grew 30 percent in the second quarter. Meredith expects online advertising revenue to continue growing due to a planned redesign and expansion of Better Homes and Gardens Web site, BHG.com and the creation of a parenthood portal – both of which will debut in the spring.