·Revenues for all operations grew by 5.1% compared to the first quarter of 2007
·Rodale print advertising revenues were up 8.8% compared to an industry-wide decline of 0.4%
·Rodale’s hit title Eat This Not That! is the best-selling health and fitness title in the U.S., with more than 400,000 copies sold since its launch in December
·Flat Belly Diet! is the most successful online product launch in Rodale’s history
·Revenues from all online activities increased by 11.6% over 2007
·Uniques and page views for Rodale’s core sites were up by 70% compared to the same period last year
·www.RunnersWorld.com received a National Magazine Award for General Excellence Online and www.Bicycling.com received a National Magazine Award for best Interactive Feature
·Women’s Health, Best Life, and Bicycling were named to Adweek’s
Hot List and Men’s Health Editor-in-Chief David Zinczenko was named Editor of the Year
EMMAUS, PA, and NEW YORK, NY, May 14, 2008 – Rodale Inc., the authoritative source for trusted content in health and wellness worldwide, reported its first quarter 2008 results today, with increased book, direct-to-consumer, and online sales, as well as strong performances from Rodale’s robust international properties, leading revenue growth of 5.1% compared to the first quarter of 2007.
“Rodale has hit on multiple winning formulas for delivering the content its readers want,” said Rodale President and CEO Steven Pleshette Murphy. “Rodale has established many customer connections—strong magazines, digital properties, direct-to-consumer capabilities, and retail channels—and these unique capabilities, combined with engaging products and great editorial, have given us a strong quarter in an enormously challenging marketplace. Despite the difficult economy, consumer demand for Rodale’s products continues to grow. Eat This Not That! by Men’s Health Editor-in-Chief David Zinczenko has already sold more than 400,000 copies and is well on track to sell more than a million in total. The Flat Belly Diet! book by Prevention Editor-in-Chief Liz Vaccariello is the biggest online product launch in our history, and the companion Web site is our most successful Rodale-branded online subscription service to date. The January/February Men’s Health was the best-selling issue in the history of the magazine, with more than 750,000 newsstand copies sold. Rodale’s online revenues grew by 11.6% and the company saw a 15.8% increase in revenues for the books division. Significantly, online activities accounted for nearly 9% of all revenues in the first quarter of the year, demonstrating that Rodale is well poised to take advantage of growing digital opportunities. Of course, none of this would be possible without exceptional editorial, and Rodale has received multiple recognitions for its content and brands to date this year.”
Rodale print advertising revenues were up 8.8% while revenues industry-wide were basically flat, with a 0.4% decline. Advertising pages for Rodale saw little change from the first quarter of 2007, with a small 0.6% decline, while pages industry-wide were down 6.3%.
Revenues for all of Rodale’s digital initiatives, including its magazine-branded sites, subscription service Web sites, and direct-to-consumer sales through online channels, increased by 11.6% compared to the first quarter of 2007. Revenues for Rodale’s magazine-branded Web sites increased by 5.6% compared to the first quarter of last year. Year to date, one-third of Rodale’s new customers were acquired through online channels, compared to 25% in the first quarter of 2007.
The following summary provides revenues for each of Rodale’s brands and lines of business. Brand revenues include the full range of activities associated with each brand, including domestic and international editions of the print magazine and companion Web sites, special publications, events, and branded online properties, books, and videos.
The Men’s Health brand recorded a 12.1% revenue increase compared to the first quarter of 2007. Magazine advertising revenues decreased by 5.6% and advertising pages were down 11.4% compared to the first quarter of 2007, according to PIB. Advertising revenues for www.MensHealth.com in the first quarter of 2008 increased by 26% over the same period last year, and page views and uniques were up by 95% and 118%, respectively.
The January/February issue of Men’s Health sold 750,560 copies on the newsstand, the most in the history of the magazine. Moreover, it set this record while also raising the cover price from $4.50 to $4.99. Men’s Health received multiple recognitions in the first quarter. Editor-in-Chief David Zinczenko earned Adweek’s prestigious Editor of the Year Award for 2008. Men’s Health also received two National Magazine Award nominations in the General Excellence and Leisure Interests categories.
The Prevention brand saw a 17.4% increase in revenues compared to the first quarter of 2007. The magazine saw a 2.1% increase in advertising revenues compared to last year, and advertising pages were down 5.2% over the same period, according to PIB. Page views to www.Prevention.com increased by 57% compared to the first quarter of 2007, while uniques were up 55% over the same period.
In January, the brand launched Flat Belly Diet! across multiple platforms, including the print magazine, www.Prevention.com, the subscription Web site www.FlatBellyDiet.com, and a book written by Prevention Editor-in-Chief Liz Vacciarello, with Prevention Nutrition Director Cynthia Sass, MPH, RD. Following the tremendous success of the book and companion site, Prevention will roll out additional Flat Belly Diet! publications and products beginning this month.
Women’s Health magazine ended the quarter up 50.8% in advertising pages and 133% in advertising revenues compared to the first three months of 2007, according to PIB. Brand revenues and online advertising revenues increased by 78.7% and 34%, respectively, over the same period.
The magazine earned the top spot on Adweek’s “Top 10 under 50” Hot List, which recognizes magazines for their excellence in ad page growth, advertising revenue gains, circulation, performance within their competitive set, editorial point of difference, and innovative marketing platforms. This is the second year in a row that the magazine was named to the Hot List. Among the 32 new advertisers in the first quarter are Burt’s Bees, Champion, Diet Coke and Garnier Nutritioniste. Additionally, page views and unique visitors to www.WomensHealthMag.com jumped by 117% and 35%, respectively, compared to the first quarter of 2007.
Advertising revenues and pages for Best Life magazine were up 25.6% and 8%, respectively, according to PIB, and brand revenues increased by 30.2% compared to the first quarter of 2007.
For the second year in a row, Best Life was named to Adweek’s “Top 10 under 50” Hot List, earning the #2 spot on the list. New advertisers in the first quarter included Tag Heuer, Salvatore Ferragamo, Sperry Topsider, Verizon, and Zenith Watches. Through its sponsorship of events such as the Vail Film Festival and this summer’s Museum of Yachting Classic Yacht Regatta, Best Life continues to establish itself as the brand of choice for the 35-plus, affluent, cosmopolitan, and successful man.
The Runner’s World Media Group, which includes Runner’s World and Running Times, recorded a 6.1% revenue increase this quarter compared to the first quarter of 2007. Runner’s World magazine saw a 2.3% decrease in advertising revenues, while advertising pages were down 6.7%, according to PIB. Page views and unique visitors to www.RunnersWorld.com jumped by 66.1% and 55.4%, respectively, compared to the first quarter of 2007.
The Web site received a National Magazine Award for General Excellence Online, and David Willey, Editor-in-Chief of Runner’s World and Executive Editor of Running Times, was elected president of the American Society of Magazine Editors. Running Times has introduced a redesign with this month’s issue of the magazine, which includes more service information and additional content for high school and college runners.
Advertising revenues for Bicycling magazine were up 2.4% compared to the first quarter of 2007, while pages decreased by 3.5%, according to PIB. Over the past 12 months, the bimonthly Mountain Bike saw its advertising pages increase by 8% and its advertising revenues grow by 15%. Revenues for the Cycling Group brand, which includes Bicycling and Mountain Bike, decreased by 10.8% over the first quarter of 2007. Currency issues negatively affected results, as many Bicycling endemic advertisers are based in Europe, and the strength of the euro relative to the dollar impacted their US advertising budgets. Unique visitors to www.Bicycling.com increased by 40% and page views increased by 33%, compared to the first quarter of 2007.
Bicycling won a National Magazine Award for best Interactive Feature for its GPS Rides Tool, and also received the Best Mobile Strategy award by the Magazine Publishers of America for the same feature. The Web site earned a MIN Best of the Web Award in the Special Online Coverage Category for its coverage of the Tour de France. For the third year in a row, Bicycling was named to Adweek’s “Top 10 under 50” Hot List.
Organic Gardening saw a 19.2% decrease in advertising pages compared to the first quarter of 2007, while advertising revenues were up 3.6%, according to PIB. Revenues for the Organic Gardening brand increased by 21.4% compared to the first quarter of 2007. Compared to the first quarter of 2007, www.OrganicGardening.com saw a 91% increase in page views, a 57% increase in page views per visit, and a 105% increase in time each visitor spends on the site.
Organic Gardening moved into 2008 with a ratebase increase to 235,000. After a very successful circulation initiative with Stonyfield Farms, which brought in 75,000 new subscribers, the magazine is guaranteed to overdeliver on ratebase for the year. Organic Gardening earned two awards from the Garden Writer’s Association of America: one for the April 2007 cover image and the other for an article on the Bee Crisis in the magazine’s Winter 2007-2008 issue.
Rodale Books saw tremendous success in the first quarter, with a 15.8% increase in revenues over the same period last year, thanks largely to Flat Belly Diet! and Eat This Not That! Since hitting the shelves in December 2007, Eat This Not That!, by Men’s Health Editor-in-Chief David Zinczenko and Associate Editor Matt Goulding, has sold more than 400,000 copies and is currently the best-selling health and wellness title in the country, according to Nielsen BookScan. Flat Belly Diet!, currently sold online and via direct mail, will be available through retail channels beginning in the fall.
Earlier this month, Rodale launched Boots on the Ground by Dusk by Mary Tillman. Upcoming titles set to launch this spring include The South Beach Diet Supercharged by Dr. Arthur Agatston and Mario Lopez’s Knockout Fitness by Mario Lopez, both of which will be supported by extensive national broadcast and print publicity campaigns.
Revenues for Rodale’s Direct Response Marketing (DRM) unit increased by 12.4% compared to the same period last year. The success of Flat Belly Diet! was a key revenue driver for the direct group. Similarly, subscriptions to www.FlatBellyDiet.com. as well as the continued growth of www.BiggestLoserClub.com, led to a 16.7% increase in Rodale’s online subscription services business.
Rodale continues to expand its international presence. Since December, Runner’s World has added editions in Mexico, France, and Poland. Women’s Health will launch in China, Turkey, and Greece in 2008, and Prevention will introduce a new edition in Indonesia this year.
Rodale Marketing Solutions (RMS) won a MIN Best of the Web Award in the Microsite/Customized Web site category for its “Nissan: Master the Shift” campaign. The site was recognized for its content, design, sponsor positioning, and overall success in terms of both traffic and revenue.
Rodale Custom Publishing added two new clients in the first quarter, Splenda and Abbott. The group continues to publish custom properties for such clients as 24-Hour Fitness, Curves, Merck, Kraft, Bloomingdales, and Tourneau.
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About Rodale Inc.
Rodale Inc. is the authoritative source for trusted content in health, fitness, and wellness around the world, reaching more than 70 million people globally. The company publishes some of the best-known health and wellness lifestyle magazines, including Men’s Health, Prevention, Women’s Health, Runner’s World, Best Life, Bicycling, Running Times, Mountain Bike, and Organic Gardening, and is also the largest independent book publisher in America with a collection of international titles, including The South Beach Diet and The Abs Diet franchises, and Al Gore’s New York Times bestseller An Inconvenient Truth. Rodale’s broad range of media platforms includes magazines, books, video, and extensive Web sites. The company is also a leader in direct-response marketing and has more than 26 million active customers in its database. www.rodale.com.