The Drilldown: Meredith Corp.
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Des Moines-based media company Meredith Corp. reported financial results for the third quarter of its fiscal year on April 28. Here are some details from the Securities and Exchange Commission filing.
• Brand licensing revenues grew nearly 50 percent in the third quarter, which ended March 31, due primarily to an increase in sales of Better Homes and Gardens-branded products at Wal-Mart stores. Brand licensing revenues were up 30 percent for the first nine months of fiscal 2010.
• Magazine advertising revenues increased 3 percent in the third quarter, although they declined 2 percent in the first nine months of fiscal 2010. On the strength of Better Homes and Gardens and Family Circle, the company’s women’s service titles increased advertising revenues and pages in both the third quarter and the first nine months of fiscal 2010. Fitness magazine also increased ad revenues and pages in both periods. Advertising revenues and pages were down in the shelter and men’s titles for the third quarter and first nine months.
• The company cut “production, distribution and editorial” expenses by $53 million in the nine months ending March 31.
• In March 2010, as part of a realignment of digital operations in the national media group (publishing), Meredith recorded a pre-tax restructuring charge of $1.7 million for severance costs related to the involuntary termination of approximately 30 employees.
• In December 2009, in response to the recessionary economy and the related decreases in consumer and advertising spending, management committed to a performance improvement plan to reposition its Special Interest Media operations. The resulting involuntary termination of about 45 employees produced severance costs of $2.2 million.