Eastern Europe, France, Mexico, Britain and Canada helped to bolster Reader’s Digest Association’s Q3 financial performance, affected by the harsher advertising climate Stateside.
The Pleasantville, New York-headquartered global publishing giant today announced higher third quarter earnings, with net income reaching $28 million, 27 cents a share, up year-on-year from $13 million, or an adjusted 17 cents a share - a performance exactly in accord with analysts’ averaged prediction of 27 cents.
However, the publisher warned of harder times to come, forecasting that the advertising slowdown would hit Q4 profits. These are now likely to equate to 18 to 21 cents a share, well below analysts’ consensus estimate of 24 cents.
Q3 ad sales declined across all the Association’s US magazine titles, including its flagship Reader's Digest which experienced a 17%.decline in ad revenues. The Global Books and Home Entertainment unit reported an operating profit of $40 million, down 15% year-on-year with revenues 8% below target at $367 million.
News source: New York Times