Meredith Corporation Reports Fiscal 2012 Second Quarter Results
NATIONAL MEDIA GROUP
Fiscal 2012 second quarter National Media Group operating profit was $36 million, compared to $42 million in the year-ago period. Revenues were $244 million, compared to $268 million. Expenses decreased 8 percent.
Fiscal 2012 second quarter advertising revenues were $107 million, compared to $122 million in the year-ago period. Fiscal 2012 second-quarter weighted average net advertising revenues per magazine page increased 8 percent, due primarily to a change in mix and stronger pricing.
The advertising declines were primarily related to food and consumer packaged goods producers – who have been particularly impacted by higher commodity prices – and pharmaceutical companies – who brought fewer new drugs to market. Meredith over-indexes the industry by more than 2 to 1 in these two categories.
The home, non-prescription drug and financial services-related advertising categories each posted double-digit revenue growth during the second quarter of fiscal 2012, their second-consecutive quarter of year-over-year growth.
"We are seeing gains in food-related advertising in early calendar 2012, and we believe overall advertising performance will improve as calendar 2012 progresses," Lacy said. "Our largest clients have had time to adjust to economic conditions, and our innovative Meredith Engagement Dividend – which guarantees marketers a return on their advertising investment in Meredith magazines – is gaining traction in the marketplace. Magazine industry advertising as a whole has held up fairly well in calendar 2011, particularly in categories such as beauty and financial services, where we are expanding our efforts via multi-platform marketing programs."
Circulation revenues increased during the second quarter of fiscal 2012/,/ driven by a gain in subscription revenues. Online orders for print magazine subscriptions nearly doubled to more than 500,000 compared to the year-ago period, due primarily to more aggressive website and email marketing programs as well as efforts to shift to online billing and renewals. Meredith is particularly focused on driving online subscriptions and paperless transactions because of cost saving and up-selling opportunities.