Meredith Corporation Reports Fiscal 2012 Second Quarter Results
"Allrecipes.com significantly enhances our digital platform," Lacy said. "It increases our relevance with a large and loyal group of consumers, and strengthens our position in the marketplace by connecting advertisers with an audience of 100 million consumers. It fits perfectly with our Total Shareholder Return Strategy, adding strategic value to Meredith, and is expected to drive incremental growth in revenues, profit and free cash flow over time."
Lacy noted that Meredith has executed the following strategic initiatives since the start of fiscal 2012:
- Acquisition of the popular FamilyFun and Every Day with Rachael Ray brands.
- Launch of tablet editions of Meredith's national brands across the iPad, NOOK Color, Kindle Fire and Samsung Galaxy platforms.
- Extension of Meredith's very successful brand licensing arrangement for its Better Homes and Gardens line of home and garden products with Walmart through 2016.
- Investment in Iris, a leading global marketing company, and the creation of the Meredith-Iris Global Network to serve the increasing global needs of domestic clients, and open doors to international clients.
- Expansion of Meredith's daily syndicated /The Better Show/'s reach to 150 markets across the country.
"I'm particularly pleased about the ongoing execution of our digital and video expansion strategy," said Lacy. "We've grown our audience online and on television, and we're aggressively extending our brands across tablet and mobile platforms. Digital and video are perfect complements to our leading portfolio of national brands – both for consumers and advertisers alike. We will continue to extend our reach on these platforms, and the acquisition of Allrecipes.com is our latest initiative."
For the first six months of fiscal 2012, earnings per share were $1.18, compared to $1.45 in the year-ago period. Revenues were $657 million, compared to $709 million. Meredith recorded $32 million, or $0.43 per share, less of political advertising revenues in the first six months of fiscal 2012 than in the year-ago period, which is expected in an off-election year.