Reader's Digest Loses $13M in Q1 '04

Share this article:
In line with statements made at the end of the 2003 fiscal year, Reader's Digest Association Inc., Pleasantville, NY, said yesterday that it lost $13 million for its 2004 first quarter.


When reporting its year-end earnings for fiscal 2003, Reader's Digest predicted that fiscal year 2004 would be down to flat with the company returning to profitability in fiscal 2005.


The first-quarter loss compares with the $2 million profit it posted for the same period in 2003. Total revenue for the company declined 4 percent to $495 million.


Reader's Digest attributed the decrease mainly to its International Business, which was down $13 million to $216 million due to reduced marketing activity and a tough business climate in many overseas markets. The Reader's Digest North America division was down $8 million to $200 million. The firm's Consumer Business Services revenue fell $1 million to $85 million.


"Overall, operating results for the first quarter were in line with management expectations," Reader's Digest chairman/CEO Thomas O. Ryder said in a statement. "We remain committed to our plan to return to year-over-year revenue and operating profit growth by fiscal 2005. Cash flow trends continue to be favorable, and we made significant progress in our cost-reduction programs and in stabilizing our international markets."


Share this article:
You must be a registered member of Direct Marketing News to post a comment.

Sign up to our newsletters

Follow us on Twitter @dmnews

Latest Jobs:

More in News

App of the Week: CardsApp

App of the Week: CardsApp

The app lets users select loyalty cards on their phone or smartwatch to display QR codes at check out time.

Rakuten Marketing Moves to a Unified Platform

Rakuten Marketing Moves to a Unified Platform

Omni experience consolidates all channel offerings into a single platform and dashboard to provide better management of the customer funnel.

Hawk Search Widens its Global Reach

Hawk Search Widens its Global Reach

Hawk Search's solution offers support for more than twice as many languages as other site search providers, according to the company.