Meredith Corp., publisher of Ladies Home Journal and other magazines, got a boost from its online business in the third quarter, helping it post a 15 percent increase in third quarter profit.
Net income was $30.5 million, or 62 cents per share, compared with $26.5 million, or 52 cents, a year earlier. Revenue inched up 1.4 percent to $395.4 million. Wall Street analysts had expected profit of 62 cents and revenue of $406 million, according to Thomson Financial.
Online advertising revenue continued to ``grow at a rapid rate,’’ Meredith said in its earnings release without providing any specifics. Chief Executive Stephen Lacy said a redesign of the ``Better Homes and Gardens’’ site and the creation of a parenthood portal will expand advertising inventory. Both sites are set to debut next year. Earlier this month, Meredith agreed to acquire ReadyMade, which publishes a Web site and do-it-yourself magazine aimed at adults in their 20s and 30s.
Otherwise, publishing revenue fell 1.5 percent to $313.7 million, while operating profit rose 1.6 percent to $48.5 million. Declines in circulation offset increases in advertising revenue. The picture was better at the company’s broadcast business thanks to political advertising. Profits rose by about 40 percent to $17.8 million while sales rose 14 percent to $82 million.
The company gave earnings guidance for the quarter and the year that met Wall Street expectations.
Earnings|Conference Call