Advo Revenue Rises, Income SlipsRevenue for Advo Inc.'s first fiscal quarter ended Dec. 28 rose slightly compared with last year, but net income fell, the company said yesterday.
Q1 revenue was $291.2 million, up from $286.9 million last year, while net income dropped from $12.1 million to $10.9 million.
Total advertising pieces for the quarter were 6.4 billion, down 1 percent, which Advo attributed to the recent period's shortened Christmas selling season.
Advo continued to expand its targeted in-home advertising network, and total packages grew 3.8 percent. This growth was driven by investments in the frequency and reach of ad programs through additional in-home mailings, the rural expansion program and growth in core primary in-home programs.
For example, earlier this week Advo said its rural expansion shared mail ad program would reach 5 million households by next month. The program provides advertisers with coverage to areas of the United States previously accessible only via solo mail. It began 18 months ago with 3 million households. In January 2002, it reached 4 million households.
Advo chairman/CEO Gary Mulloy said that though Advo is still cautious about the economy and the retail environment, "we remain comfortable with our previously issued expectation of 2 percent revenue growth for fiscal 2003."