Meredith Sees Ad Revenue Dropoff

Meredith Corp. reported lower ad revenue in its just-ended fiscal third quarter but maintained that it improved results in several of its top magazine ad categories in recent months on efforts to grow market share.
 
The parent of such iconic women’s titles as Better Homes and Gardens and Family Circle reported that publishing ad revenue declined by 12 percent to $132 million in the quarter ended March 31. However, the company said that the decline amounted to an improvement over the prior two quarters.
 
The company foresees publishing ad revenue dropping another 12 percent year over year and future cost reductions in its fiscal fourth quarter ending June 30 as the economic meltdown continues to affect advertisers’ spending.
 
In the third quarter, circulation revenues declined 12 percent as the company published fewer special-interest titles and experienced softness in newsstand sales. The broadcasting segment fared no better, with ad revenue down 31 percent to $57 million in the third quarter on a decline in automotive advertising.
 
Third-quarter earnings per share fell 42 percent to 56 cents on a 14 percent decline in revenue to $338 million.