As income slows, Harte-Hanks turns to digital growth

Share this article:

Harte-Hanks Inc. has reporteda 2007 net income of $92.6 million — a 17.1% decrease from the 2006 figure of $111.8 million.

The significant decrease was attributed to ongoing poor performance from the company's Shopper business, a weekly circular sent to households in Florida and California. The business saw a 15.8% decrease in operating revenue over the last quarter and a 9.4% decrease in operating revenue over the last year.

During a conference call regarding the results, company president Dean Blythe said Harte-Hanks' cost-cutting measures were not sufficient enough to make up for the revenue loss. He acknowledged that the company's direct marketing seg­ment was healthier — with a 3.2% rev­enue increase for 2007 — but said this “was a rate less than we believe we can generate from this business over the lon­ger term.” The company said it is look­ing to further streamline its business.

Last week, in an effort to strengthen its international footprint and digital offering, Harte-Hanks Inc. acquired UK-based digital marketing agency Mason Zimbler Ltd.

“The deal is a bit more strategic,” said Gary Skidmore, president of Harte-Hanks Direct Marketing. “Spending in the digital arena is growing. This allows us to more readily to take part in that. It broadens our capabilities internation­ally to give us more of a similar offering overseas as we have in the US.”

Mason Zimbler provides technology companies with a range of integrated digital marketing services, including di­rect marketing, advertising and brand­ing as well as media planning and buy­ing, research and other services.

This complements a recent deal with Information Arts to provide analytics and data services for Harte-Hanks cus­tomers in the EMEA region.

The acquisitions support Harte-Hanks' strongest sector. Last quarter, its hi-tech/telecom vertical reported “strong year-over-year double-digit revenue growth,” according to Doug Shepard, EVP and CFO. Its financial vertical also had growth, while the retail vertical and pharma/healthcare both saw downturns this quarter.

“Before this acquisition, for our tech­nology customer, we offered technology databases, we had call center services, fulfillment services and a channel man­agement solution,” Skidmore explained. He added that the first priority for Harte-Hanks Direct Marketing was to extend the digital services from the ac­quisition to existing customers

Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Agency

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in Agency

Publicis Constructs Pan-Agency Marketing Platform With Adobe

Publicis Constructs Pan-Agency Marketing Platform With Adobe

Riding on the Adobe Marketing Cloud, the Always-On Platform aims to unite all Publicis Agencies around delivering cross-channel efficiencies to clients.

Mohegan Sun Bets on an Integrated Customer Experience

Mohegan Sun Bets on an Integrated Customer Experience

Casino and entertainment destination Mohegan Sun went all-in and overhauled its website to improve its guest experience online and on-site. The casino's payoff was big.

Former Lenovo Executive to Head Digital Marketing at Interakt

Former Lenovo Executive to Head Digital Marketing at ...

Elijah Degen brings 15 years of experience to his new role at the digital agency.