InfoUSA Revenue Up, Profit Down

First-quarter revenue for database marketing services provider infoUSA rose to $103.1 million versus $95.1 million in first-quarter 2005 as profit sank to $7.95 million from $9.1 million, according to the company's earnings report for the quarter ended March 31 released Friday.

The Omaha, NE, firm reported operating income of $15.5 million, down slightly from $15.6 million for the first quarter of the prior year.

InfoUSA's Donnelley Group reported Q1 2006 revenue of $65 million, up from $57.2 million in 2005. The group includes Donnelley Marketing, Yesmail, Catalog Vision, OneSource and the List Brokerage and List Management division, which houses Walter Karl, Edith Roman Associates and Millard Group.

The infoUSA Group, which offers directory products, vertical industry databases, online mailing lists, marketing leads and retail consumer products, posted Q1 revenue of $38.1 million, up from $37.9 million last year. Increased advertising and marketing initiatives for offerings such as, and led to the growth, the company said.

InfoUSA increased Q1 advertising expenses by $2.5 million over the previous year in a branding effort for its subscription products.

“We were extremely pleased with the continued strong performance of our subscription products for the first quarter of 2006,” Vinod Gupta, infoUSA chairman/CEO, said in a statement. “By converting our one-time list customer to a subscription customer and signing on a new class of customers to, we are creating a recurring revenue stream and revenue growth engine.”

As the number of subscribers to these products rises, advertising and marketing spending will be adjusted to match with revenue, Mr. Gupta added.

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