StockCall Scans McGraw-Hill and Meredith Corp.: Publishing Industry Looks to Boost Revenue
by PR Newswire
LONDON, February 19, 2013 /PRNewswire/ --
Over the last few years, the publishing industry has struggled due to declining advertising revenue. The problems were exacerbated by the economic recession of 2009 and the slow recovery thereafter. However, publishers have been trying to make a comeback through cost-cutting measures and by boosting their digital offerings. Recently, two major publishers, The McGraw-Hill Companies Inc. (NYSE: MHP) and Meredith Corporation (NYSE: MDP), reported their quarterly results, which reflected the improving fundamentals for the publishing industry. StockCall has taken an interest in these companies and you can now sign up to download the free technical research on McGraw-Hill Co. and Meredith at
Looking to Boost Revenue
The biggest concern for publishers over the last few years has been declining advertising revenue. Advertising revenue has fallen sharply due to increasing competition from the Internet. While newspapers have been the worst hit, magazine publishers have also suffered due to the shift to online content.
The economic recession of 2009 and the weak recovery thereafter also led to cuts in advertising budget. This further had a negative impact on the industry.
However, publishers have been making a comeback through cost-cutting measures, including reducing workforce. In addition, a number of newspapers and magazines have raised their subscription fees to offset the declining advertising revenue. Publishers are also boosting their digital offering and using new technology to reach a wider audience.
Meanwhile, an improving economic outlook also augurs well for the industry as this should boost advertising budgets.
McGraw-Hill Reports Quarterly Results
Last week, McGraw-Hill, which provides information on the financial, commodities and commercial markets globally, reported its financial results for the fourth quarter of 2012. Sign up today to read the free research report on The McGraw-Hill Companies Inc. at
The company's Financial division reported fourth quarter revenue of $1.226 billion, representing an increase of 22% over the same period in the previous year. The division's net income for the quarter was $190 million, or $0.67 per share.
Harold McGraw III, Chairman, President and CEO of The McGraw-Hill Companies Inc., last week said that in 2012, McGraw Hill Financial delivered 13% revenue growth and 32% diluted adjusted earnings per share from continuing operations growth and the performance demonstrates the growth potential of McGraw Hill Financial, with its market leading positions providing essential intelligence to its customers.
Meredith Posts Strong Q2 Fiscal 2013 Results
Last month, Meredith Corp. delivered strong second quarter fiscal 2013 results. For the quarter, the Des Moines, Iowa-based company reported earnings per share of $0.79. Excluding one-time charges, earnings for the quarter rose 27% to a record $0.89 per share. Revenue for the quarter rose 10% to $361 million. Advertising revenue for the quarter rose an impressive 18% to $217 million. Register to download the free technical analysis on Meredith Corp. at
Stephen M. Lacy, Chairman and CEO of Meredith Corporation, said that the company's Local Media Group delivered record-setting revenue and operating profit performance for the second quarter and the first half of 2013. Lacy further said that the company's digital business continued its rapid growth, and its recent acquisitions again delivered strong contributions.
Meredith's Local Media Group reported a 30% increase in revenue to $198 million for the first half of fiscal 2013 which is a record for the period.
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