Reader's Digest Posts Q1 Loss

Share this content:
Reader's Digest posted a net loss of $5.2 million for the fiscal first quarter ended last month compared with a net loss of $1.1 million in the prior year, the company said Friday.


Revenue in the quarter rose 4 percent to $517.1 million from $497.5 million. The gain was driven largely by the May acquisition of Reiman Publications, which contributed $68 million in the first quarter. Excluding Reiman, first-quarter revenue declined 10 percent.


First-quarter results did not include $25 million in revenue and $16 million in operating profit from certain book-marketing programs at Reiman Publications that Reader's Digest decided to recognize in the second quarter instead of the first.


The North America Books and Home entertainment division had revenue of $115 million and operating profit of $3 million compared with a loss of $11 million in the first quarter of fiscal 2002.


The International business had revenue of $228 million and an operating loss of $2 million. The division had an operating profit of $13 million last year. Results were affected by mailing interruptions resulting from flooding in Europe, Reader's Digest said.


This article is part of the DMNPolitics site, in partnership with Fluent. Click on the footer to see all of our content about the 2016 Election

Loading links....

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs: