Meredith’s Publishing and Interactive Divisions Lead Revenue Growth
Corporation’s second quarter earnings rose by $1 million in fiscal 2008.
Meredith Corporation has reported fiscal 2008 second quarter net earnings of $36 million, $1 million more than that of the same period 2007, with growth primarily led by its publishing and interactive divisions.
In the publishing division, operating profit for the second quarter fiscal 2008 increased nearly 30 percent from the same period fiscal 2007. Revenue rose 5 percent to $309 million while advertising revenue rose eight percent, led by More (up 30 percent), Parents (up 17 percent), Better Homes and Gardens (up 9 percent) and Family Circle (up 8 percent).
For the first half of fiscal 2008, publishing operating profit grew 22 percent to $100 million, compared to the same period 2007, and operating profit margin increased two percentage points. Publishing revenues increased six percent to $638 million, while ad revenues grew 11 percent.
Meredith Interactive Media revenue climbed more than 25 percent in the second quarter. The company attributes this growth to the redesigns of BHG.com and Parents.com, as well as to strong performance at Meredith’s niche enthusiast sites. During the quarter, the number of unique visitors on Meredith’s sites averaged 10 million, and page views averaged nearly 150 million per month. The average time spent on the sites per visitor grew 5 percent to 12 minutes, and the number of video views rose 75 percent to 2.7 million.
Meanwhile, Meredith’s broadcasting division saw operating profits decline by $12 million, from $40 million to $28 million. Revenues in the first six months decreased 13 percent to $162 million. However, its broadcasting online revenues rose 50 percent during the quarter, and the number of average unique visitors rose six-fold to 3 million per month.