Reader's Digest Announces 4th Quarter Adjustments
Reader's Digest Association, Pleasantville, NY, yesterday announced adjustments to fourth quarter and fiscal 1999 results. Operating profit for fiscal 1999 was up 67 percent to $167 million as the result of aggressive initiatives designed to jettison unprofitable activities and businesses in fiscal 1999. Revenues were down fourth quarter 16 percent to $530 million compared with the same period last year; year-end revenues were down 6 percent to 2.5 billion, and adjusted net income was up 202 percent to 16.3 million in fourth quarter 1999.The initiatives included the significant reduction of promotional mailings and the elimination of product development and overhead costs to improve subscription response rates. Reader's Digest also reduced the flagship's rate base and sold art and real estate holdings.
Separately, the company announced it will cease publishing American Health after the October issue; the magazine's trademark and subscriber list were sold to Time Inc. Health, a subsidiary of Time Inc., for an undisclosed sum.
