August 16, 2000
*Reader's Digest Cites Non-Sweepstakes Channels in Acquiring Subscribers
Reader's Digest Association Inc., Pleasantville, NY, said yesterday that more than 50 percent of its new magazine subscribers in the second half of its fiscal year 2000, which ended June 30, came from non-sweepstakes direct mail and new marketing channels. The new channels included package and newspaper inserts, catalog blow-ins, telephone sales, the Internet and direct response television, all of which the company said had lower costs than sweepstakes direct mail, which previously had been the company's main source of new subscribers.
For fiscal year 2001, Reader's Digest projected its first year-over-year increase in new subscribers since 1972, including 1 million customers from non-sweepstakes direct mail and new marketing channels.
The company released the information as part of its fiscal 2000 earnings report, in which it posted earnings of $1.61 per share, up 16 percent over earnings of $1.39 per share a year ago. Revenues for the year were $2.6 billion, up from $2.5 billion a year ago.