Magazines, unlike newspapers, have been holding on to their ad revenue, for the most part. Things even started to get better. But there are signs that the “recovery” may be losing steam, when we were just starting to get used to it.
[A]n advertising pullback has caused women’s magazine publisher Meredith Corp to experience a slight decline…
Specifically, the Local Media Group gained 5 percent—though that was significantly lower than the 16 percent bounce the segment got a year ago as the magazine industry emerged from the recession.
Here are the National Media Group’s numbers:
—Operating profit was $48 million, compared to $51 million in the year-ago period.
—Total revenues were $270 million, compared to $285 million.
—Advertising revenues were $122 million, compared to $137 million.
—Operating expenses declined 5 percent.
Kaplan points out that the 16 percent bounce a year ago may have been so high because magazines were benefiting from “pent up demand after two years of downward spending trends.” Nonetheless, the shrinking gains may be a sign that the recovery of the magazine industry is losing steam.