McGraw Hill’s Q2 troubles can’t all be blamed on the falling advertising at BusinessWeek, though it does seem indicative of its wider problems. The company’s profits skidded 22.7 percent to $164.1 million ($0.52 cents per share) from Q208′s $212.3 million ($0.66 cents a share). Revenue in the quarter fell 12 percent to $1.47 billion, below Thomson Reuters’ analyst consensus, which anticipated earnings of $0.55 with revenue of $1.54 billion.
Although not the largest part of McGraw Hill, the Business-to-Business Group declines contributed greatly to McGraw Hill’s poor performance. BtoB, which includes Aviation Week, J.D. Power and Associates, McGraw-Hill (NYSE: MHP) Construction, Platts and BusinessWeek, saw revenue decreased by 10.2 percent to $215.8 million. And as McGraw Hill ponders selling BusinessWeek, the 34.3 percent decline in the mag’s global edition ad pages is not likely to help it attract many buyers.
|2Q 2009||2Q 2008||Analysts’ Estimates For 2009|