Meredith Corp., a magazine publisher and parent of WFSB-TV Channel 3 in Rocky Hill, said today its fiscal second-quarter profit slid 65 percent mostly on a hefty special charge as ad sales continued to weaken.
Net income dropped to $12.5 million, or 28 cents per share, compared with $36.1 million, or 75 cents per share, in the same quarter a year earlier.
Excluding a charge of 21 cents per share related to job cuts, the closing of Country Home magazine and other actions, earnings were 49 cents per share in the latest quarter.
Analysts surveyed by Thomson Reuters forecast a profit of 47 cents per share for the quarter ended in December. Analysts’ estimates typically exclude one-time items.
Revenue in the quarter slipped 8 percent to $366.2 million from $396.2 million. Analysts expected $363.2 million in revenue.
Ad sales dropped to $204.2 million from $239.3 million, while circulation revenue dipped to $69.3 million from $73 million.
“Advertising revenues across our businesses continue to be significantly impacted by the recession,” President and Chief Executive Stephen M. Lacy said in a statement.
Media companies have been squeezed by the recession and a shift of consumers and advertisers to the Internet.
The publishing segment’s ad sales fell to $122 million from $153 million in the quarter.
For the broadcast division, revenue edged down to $84 million from $88 million.
Lacy maintained that the company will be able to handle the difficult ad environment and financial market instability due to its solid balance sheet and low debt level.
Earlier this month Meredith said it would eliminate 250 jobs, or about 7 percent of its work force. The company, whose publications include Better Homes and Gardens, Parents and the Ladies’ Home Journal, has about 3,500 employees.
At 11 a.m., Meredith’s shares traded at $17.44, down $1.31, or 7 percent. (AP)
