Meredith Corporation has announced its earnings report for the fiscal 2016 second quarter, citing higher overall revenue and income coming from its magazine group.
“We’re pleased to report strong advertising performance – including growth on an organic basis -- in our National Media Group during the second quarter of fiscal 2016,” stated Meredith chairman and CEO Stephen M. Lacy.
Meredith’s National Media Group operating profit grew 29% to $34 million, compared to $26 million in the prior-year period. The company’s National Media Group reaches 100 million American women and over 60% of U.S. millennial women.
Revenues were $267 million, compared to $242 million in the prior-year period, driven by total advertising revenues -- which grew 18% to $137 million -- and the acquisitions of Shape, Martha Stewart Living and mywedding.com, along with digital advertising platform Selectable Media.
This is in addition to the company’s increased brand licensing revenues.
Both print and digital advertising revenues each increased more than 15%. Digital advertising revenues hit a record high, and accounted for 33% of total National Media Group advertising revenues.
Circulation revenues increased 12% to $66 million, primarily due to the additions of Martha Stewart Living and Shape magazines. Meredith expanded its digital consumer marketing activities, driving more than one-third of magazine subscription acquisitions via digital sources in the last 12 months.
“We are pleased to deliver strong growth in operating profit in the quarter, led by growth in organic advertising and contributions from our recent acquisitions,” said Meredith National Media Group president Tom Harty.
Total Company digital advertising revenues grew more than 15% to a record high. Digital advertising revenues accounted for a third of National Media Group total advertising revenues.
Meredith reported its earnings per share were $0.72, compared to $0.87 in the prior-year period.
In other Meredith news, Nexstar Broadcasting Group won out over the company to take over Media General TV stations in a $4.6 billion cash and stock deal. But Meredith will get a $60 million break-up fee, as well as the opportunity to catch a peek at certain TV stations and digital businesses owned by Media General that are to be spun off.
As Publisher’s Daily also reported, Meredith Corp. signed two new brand licensing deals this week. On Tuesday, Meredith Brand Licensing announced new product partnerships for EatingWell and Shape, in the food and apparel categories, respectively.