A Stock Index Becomes Part of New-Product Emphasis for CurtCo
The recent launch of the Robb Report Global Luxury Index—which tracks stock price performance of luxury goods and services companies—is part of an effort to move the company beyond the perception of being “just” a magazine publisher. “We do not see ourselves as a publishing company,” says CurtCo chief operating officer Dan Galpern. “We see ourselves as a brand house with brands that have powerful and special relationships with ultra affluent consumers. However we can, we’ll provide that interaction, it doesn’t have to be in print.”
To qualify for the index, companies must trade on a major U.S. or global-developed market exchange and have a market capitalization of $500 million or higher. CurtCo teamed with Clear Indexes, LLC, to help develop and maintain the index, and has partnered with Claymore Securities to replicate the index in a licensing deal “well into the six figures,” according to Galpern. “This is an opportunity for us to license our brand and get a premium for it,” he adds. “We believe there is significant revenue to be made here. These are the early days so we’re not going to make any bold statements about what we think it can be. We look at this as a way to not only brand ourselves but generate significant revenue.”
While CurtCo has developed a successful event series targeting the ultra-affluent, the company is still perceived within the industry primarily as a magazine publisher. Last fall, CurtCo, which had about $100 million in revenue and $20 million in EBITDA, walked away from at least 12 different buyout offers, including some offering as much as 12 times EBITDA.
Galpern acknowledges that print remains CurtCo’s primary revenue vehicle. International editions of The Robb Report will soon debut in markets such as India and China. “We continue to be a print-driven business and will be for quite some time,” he says. “Our print business is strong and healthy. That being said, we are growing other revenue streams and expect each to become major contributors to top and bottom lines.”