Meredith Q1 2010: As Revenue, Advertising Slides, Profit Remains Steady

Meredith Corp. (MDP) reported earnings of $18.3 million for its fiscal first quarter 2010, just a bit less than its $18.6 million of Q1 2009. Revenue declined by $32 million to $332 million, hurt by a drop in ad spending—though the magazine publisher says this is its third straight quarter of ad improvement—while the company reduced operating expenses by $25 million, mostly by cutting almost $20 million from its production, distribution, and editorial budgets.

The Local Media Group, which operates Meredith’s television stations, also saw a 15 percent drop in revenue and an 80 percent drop in profit due to lack of political advertising in the quarter; that division contributes 20 percent of Meredith’s revenue.

Meredith’s two largest-circulation magazines – Better Homes and Gardens and Family Circle – grew advertising revenues 3 percent and 13 percent, respectively, compared to the prior-year period.

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