Rodale Reports Revenue Increase, Playboy Publishing Expects Increased Advertising in ’07
Rodale Inc., publisher of Men’s Health, Women’s Health, Prevention, Runner’s World and other publications, has reported an overall revenue increase for 2006 of 5.7 percent to $586 million, from $554 million in 2005. Revenue for U.S. operations increased 3.4 percent. The company attributes the growth to increases in Web traffic, ad pages and circulation for its magazines, it said in a statement.
Rodale’s U.S. magazines achieved 7 percent growth in advertising revenues and 1.9 percent ad page growth in 2006, according to the Publisher’s Information Bureau year-end analysis for January-December 2006, the company said.
The company’s newest magazines Women’s Health and Best Life also ended the year on high notes. Women’s Health, launched in October 2005, ended the year up 113.6 percent in ad pages over 2005 and gained 90 new accounts in 2006. The title has announced its third rate-base increase to 850,000, effective with the July/August 2007 issue. Best Life, launched in 2004, grew ad revenue by 120.8 percent and ad pages by more than 64 percent. It plans its third rate base increase, from 400,000 to 450,000, for January/February 2007.
Other highlights included:
- Men’s Health is now the No. 1 selling men’s magazine on newsstands, exceeding Maxim. For the first six months of 2006, single copy sales increased 10 percent and total paid circulation went up 5 percent versus the comparable period in 2005.
- Prevention saw its third consecutive year of revenue increases, up 5.2 percent, even as its ad pages declined 3.4 percent.
- Runner’s World finished 2006 up 6 percent in ad pages and 14.8 percent in revenue.
Playboy Sees Decline in Publishing Revenue in 4Q, But Expects Ad Growth This Year
Playboy Enterprises closed the fourth quarter of 2006 with a decrease in its publishing segment revenues of $1.5 million to $25.2 million but says it expects ad revenues for the first quarter of this year to be up 22 percent over ad revenues for the first quarter of 2007.
The company also says it narrowed its publishing segment loss in the fourth quarter of last year to $0.5 million, from a $3.1 million loss in the fourth quarter of 2005. Increased advertising revenues combined with lower editorial and marketing expenses at the magazine were responsible for the improved year-over-year results, the company said in a statement.
As a whole, Playboy Enterprises posted net income of $3.7 million for the fourth quarter of last year, down from $4.6 million in the same period in 2005. Operating income for the quarter totaled $3.1 million compared to $7.3 million in 2005 and revenues were $85.2 million compared to $91 million in the fourth quarter of 2006, the company added.