Meredith Corp (MDP) today reported earnings of $31.5 million for the second quarter of fiscal 2012 on revenues of $328 million.
The quarter for the womens’ media company covers the three months ended December 31, 2011.
The company was able to lower expenses and keep circulation steady, but wasn’t able to counter the downward slide of advertising revenues, just like most media companies struggling to take in advertising dollars from an increasingly fragmented media world.
While $21 million of Meredith’s $30 million advertising slide was from a lack of political advertising (as expected in an off year), the remaining $9 million came from a lack of ads in the food and consumer packaged goods categories, whose producers have been “particularly impacted by higher commodity prices,” and pharmaceutical companies, who brought fewer new drugs to market.
“We are seeing gains in food-related advertising in early calendar 2012, and we believe overall advertising performance will improve as calendar 2012 progresses,” Meredith CEO Stephen Lacy said in a statement. “While the advertising market remained challenging for our National Media Group, we’re seeing an improving trend as we look to early calendar 2012, particularly in the food and home advertising categories.”
Meredith also announced today that it would acquire Allrecipes.com from the Reader’s Digest Association for an undisclosed sum.