Harte-Hanks' direct marketing revenue up slightly
Harte-Hanks' third-quarter direct marketing revenue increased 0.6% to $151.9 million compared with Q3 2010, while direct marketing operating income declined 10.8% year-over-year to $20.5 million. The San Antonio, Texas-based company reported a decline in overall revenue in the quarter, decreasing 1.8% to $212.8 million compared with Q3 2010.
Harte-Hanks' overall operating income decreased 17.3% to $20.7 million in Q3 2011, compared with the third quarter of 2010. Net income also decreased in the quarter, falling 12.2% to $12.1 million year-over-year.
“I'm pleased with our direct marketing growth performance,” Larry Franklin, chairman, CEO and president of Harte-Hanks said on an earnings call on Oct. 27. “This was the business' fifth consecutive quarter of growth.”
“We're adding people, capacity, process and products to our database business,” he added.
The company's retail business brought in the highest percentage of Q3 2011 direct marketing revenue at 27%. Technology business generated 24% of overall direct marketing revenue in Q3. Financial and insurance services earned 14% of Q3 direct marketing revenue; healthcare and pharmaceuticals represented 10%; and other select markets represented 25%.
Franklin said digital work comprised 40% of revenue during the third quarter.
Harte-Hanks promoted Brian Dames to corporate VP in September. Dames is responsible for leading the company's database marketing and analytics businesses. The marketing services company also promoted Jeff Simpson to SVP of retail and consumer brand markets in the firm's direct marketing division in August.