Reiman Addition Boosts Revenue at Digest
The company said this week that revenue grew 6 percent to $831 million in the quarter ended Dec. 31 versus the prior-year quarter. Reiman Publications added $99 million in revenue. Excluding Reiman, Reader's Digest said revenue declined 7 percent.
Reader's Digest said in March 2002 that it would buy most of the assets of Reiman Publications for $760 million in cash. Reiman's operations included 12 cooking, gardening, country living and nostalgia magazines as well as a mail-order business and book club, along with its proprietary database of more than 32 million individuals.
Operating profit of $147 million for Reader's Digest was 16 percent higher than in the year-ago quarter.
U.S. Magazines recorded revenue of $342 million, up 40 percent. Revenue was down at Reader's Digest magazine.
The company's North America Books and Home Entertainment segment reported operating profit of $28 million, up from $21 million in the year-ago quarter. Revenue for the segment was $199 million, a decline from $226 million last year. The company attributed the drop to a reduction in sweepstakes marketing in the United States.
The International Businesses segment, which includes books and home entertainment as well as magazines outside North America, reported revenue of $290 million, down from $313 million last year. Operating profit was $23 million, compared with $37 million in the year-ago quarter.