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FULL YEAR: MEREDITH'S REVENUE'S DOWN 11%, EARNINGS DOWN 33%
Source: Meredith news release

To view the complete report, click here.

Des Moines, IA - Meredith Corporation (NYSE: MDP; Meredith.com) today reported fiscal 2020 fourth quarter and full year results.

"We took important steps in fiscal 2020 to strengthen Meredith's competitive position over the long-term, including accelerating our digital businesses and capabilities; strengthening our market-leading portfolio of brands; and growing our connection to more than 190 million consumers who interact with our brands," said Meredith President and Chief Executive Officer Tom Harty.

"While the COVID-19 pandemic continues to materially impact our business, we saw continued strong consumer engagement along with improvement in advertising revenue performance during the course of the fourth quarter, particularly for our digital and broadcast properties. Additionally, we continue to take proactive action to maximize free cash flow, ensure ample liquidity, and enhance our financial flexibility.

"Looking ahead, we believe our strong brands and audience reach - which includes nearly 95 percent of American women, 155 million unique monthly digital visitors, and a paid subscription base of 36 million consumers - positions us to enhance the value we deliver to our advertising and marketing partners and continue growing our consumer connection," Harty concluded.

Financial Results Most Impacted by COVID-19, Strategic Portfolio Changes and Political Advertising
Fiscal 2020 fourth quarter revenues were $611 million, a decline of 22 percent from the prior year period, due primarily to (1) COVID-19 related advertising cancellations and delays that reduced revenues by an estimated $136 million; and (2) Previously announced magazine portfolio adjustments designed to improve profitability that reduced advertising and consumer related revenues by approximately $40 million.

Fiscal 2020 fourth quarter earnings from continuing operations was $6 million, compared to a loss of $4 million in the prior year period. Fiscal 2020 fourth quarter adjusted EBITDA was $80 million, compared to $169 million in the prior year period, primarily due to COVID-19-related declines in advertising. In spite of lower revenue and earnings, cash flow from operations was a strong $124 million in the fiscal 2020 fourth quarter, up 33 percent from the prior year period.

Fiscal 2020 full year revenues were $2.8 billion, a decline of 11 percent from the prior year due primarily to (1) COVID-19 related advertising cancellations and delays, and impact to consumer related activities that reduced revenues by an estimated $154 million; (2) Previously announced magazine portfolio adjustments of approximately $126 million; and (3) $79 million lower political advertising revenues in Meredith's Local Media Group, as expected in a non-political year. These declines were partially offset by $31 million retransmission growth.

Fiscal 2020 full year loss from continuing operations was $209 million, compared to earnings from continuing operations of $129 million in the prior year, due primarily to non-cash impairments of goodwill, intangible, and lease-related assets. Fiscal 2020 adjusted EBITDA was $548 million, compared to $706 million in the prior year, due primarily to COVID-19-related declines in advertising along with lower political advertising revenues, as expected in a non-political cycle. In spite of lower revenue and earnings, cash flow from operations was $307 million in fiscal 2020, up 25 percent from the prior year period.


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