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Meredith Q2 Earnings "Significantly Impacted" By Recession - Broadcasting & Cable

Meredith Q2 Earnings "Significantly Impacted" By Recession

Reports fiscal second quarter revenues of $366 million, down from $396 million in the same quarter a year ago
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Meredith Corporation reported fiscal second quarter revenues of $366 million, down from $396 million in the same quarter a year ago.

Meredith reported earnings per share of $0.28, including a special charge of $0.21. Excluding the charge, Meredith's earnings per share were $0.49, down from fiscal 2008 second quarter earnings per share of $0.75.

Meredith recorded a special charge of $16 million in the fiscal second quarter, which includes the cost of a companywide workforce reduction that mostly hit its publishing sector.

"Advertising revenues across our businesses continue to be significantly impacted by the recession," said Meredith President/CEO Stephen M. Lacy. "However, certain revenue streams not tied to advertising are growing, particularly our integrated marketing, brand licensing and video production activities. Also, even in these difficult economic times, our connection to the consumer is rock solid and strengthening. We've seen notable gains in magazine readership and circulation response rates for many of our national brands, as well as marked improvement in news ratings at our local television stations."

Broadcasting operating profit was $22 million, compared to $28 million a year ago. Revenues in the broadcasting space were $84 million, compared to $88 million in the fiscal second quarter last year. Net political revenues were $17 million.

Helping broadcasting's bottom line is Meredith's recent retransmission agreement with Comcast in eight of its 10 TV markets.

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