Meredith's TV Revs Soar 30%, Political Ads Big Factor
Meredith Corp. saw television ad revenue climb almost 30% for its fiscal first quarter 2011.
The company credits its 27% gain in TV advertising to a large $12 million in net political advertising and an 8% increase in non-political advertising, which rose to $58 million. Eight of its 10-largest non-political advertising categories grew revenues, led by automotive, retail and media-related advertisers.
Overall, at its Local Media Group -- primarily TV station group and associated digital businesses -- revenue rose 25% to $76 million.
Meredith Chairman and CEO Stephen M. Lacy stated: "Local broadcast television remains the most effective way for advertisers to efficiently reach large consumer audiences and drive them to retail."
Going forward, the company expects the Local Media Group will see non-political advertising revenues rise in the low- to-mid-single-digit range for the coming quarterly periods. It expects political advertising to grow $15 million to $18 million in its coming quarterly reporting period.
At its National Media Group, primarily its magazine division, revenues dipped slightly to $268 million versus $272 million a year ago. Operating profit rose a bit to $39 million.
Looking at just print magazine advertising, total revenues were about the same, at $136 million. Circulation revenues slipped 4% in the first quarter of fiscal 2011.
National Media Group expects advertising revenues to rise in the low- to-mid-single-digit range in the coming periods.
Other highlights: Meredith says online advertising revenues improved 21%, from higher pharmaceutical, consumer packaged-goods and retail categories.
Overall, Meredith posted revenues of $344.4 million are up slightly -- 4%, from $332.4 million in the period. Net earnings grew 40% to $25.7 million.