Meredith's TV Revs Solid, Top Magazines' Poor Performance
Crucial auto advertising TV business slowed down a bit in Meredith’s recent reporting business. But overall, its TV businesses continue to shine over its lackluster magazine group.
Auto advertising for TV stations grew 4% in the company’s third quarter fiscal 2012 reporting period -- down from a 13% increase for the same period a year ago.
Still, revenues from its Local Media group -- TV stations -- grew 10% to $78 million. The group benefited from a 11% gain from advertising of its Professional Services category. Operating profit from the group was $23 million, a 71% rise compared to $13 million in the previous year period.
Meredith’s digital advertising revenues for its TV businesses gained 70%, driven by what it calls “enhanced sales initiatives and product offerings."
Revenues for Meredith’s National Media Group -- magazines -- grew 2% in advertising sales to $123 million. But it says excluding recent acquisitions, advertising revenues were down 7%. Over-the-counter drugs and media and entertainment were strong categories, compensating for weakening prescription drug and retail advertising.
As with its TV stations, magazines' digital advertising revenues grew 70% with the food category doing solid business.
Overall, company revenues increased to $346 million from $339 million, with net earnings sinking to $21.2 million from $30.8 million.