FOR IMMEDIATE RELEASE
RODALE REPORTS 2008 SECOND QUARTER RESULTS
·Revenues for all operations grew by 7.6% compared to the second quarter of 2007>
·Rodale print advertising revenues were up 8.3% compared to an industry-wide decline of 4.9%
·Revenues from all online activities increased by 27.1% over the second quarter of 2007, and uniques and page views for Rodale’s sites were up by 74% and 94%, respectively, compared to the same period last year
·Revenues from international operations through June are up 14% compared to the first half of 2007
·Rodale has shipped more than 1 million copies of Eat This Not That! by Men’s Health Editor-in-Chief David Zinczenko and Associate Editor Matt Goulding to retail outlets since the book was released in December 2007
EMMAUS, PA, and NEW YORK, NY, August 6, 2008 – Rodale Inc. reported its second quarter 2008 results today. Revenues for the company increased by 7.6% over the second quarter of 2007, led primarily by increased e-commerce activity, the success of its integrated advertising programs, growth in international operations, and robust sales of Eat This Not That! and Flat Belly Diet!
“Two years ago, we foresaw two significant challenges-a softening advertising market, and the rising costs of paper, postage, and printing,” said Rodale President and CEO Steven Pleshette Murphy. “Our strategy was threefold. First, create smart, integrated marketing solutions for clients that bring together our many assets to drive consumer engagement. Second, build our e-commerce capabilities so that we could connect with our customers directly online. And third, expand our international footprint. This quarter’s results show that we’re successfully translating this strategy into action, with a 76% increase in integrated deals and a 39% increase in the number of books, DVDs, and magazine subscriptions sold online compared to last year. We’re also on track to launch 11 new international editions in 2008-the most ever in one year for Rodale. These achievements, paired with Rodale’s continued development of winning new products such as our huge hits Eat This Not That! and Flat Belly Diet!, have fueled our growth in this challenged market.”
Rodale print advertising revenues were up 8.3% while revenues industry-wide saw a 4.9% decline. Advertising pages for Rodale magazines saw a slight gain from the second quarter of 2007, with an increase of 0.5%, while pages industry-wide were down 8.4%.
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 27.1% compared to the second quarter of 2007. Revenues for Rodale’s magazine-branded Web sites increased by 14.7% compared to the second quarter of last year. Year to date, 36% of Rodale’s new customers have been acquired through online channels, compared to 29% in the first half 2007.
The following summary includes revenue growth for each of Rodale’s brands and lines of business compared to the same period last year. Brand revenue growth calculations take into account 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.
Revenues for the Men’s Health brand were flat compared to the second quarter of 2007. Magazine advertising revenues decreased by 7.8% and advertising pages were down 13% compared to the second quarter of 2007, according to PIB. Advertising revenues for www.MensHealth.com in the second quarter of 2008 increased by 42.4% over the same period last year, and page views and uniques were up by 139.7% and 108.8%, respectively. In May and June, the site recorded more than 1 million video plays.
According to Spring 2008 MRI results, Men’s Health readership has increased by 16% compared to spring of 2007-the highest readership in the history of the magazine. The best-selling book Eat This Not That! by Men’s Health Editor-in-Chief David Zinczenko and Associate Editor Matt Goulding has sold more than 600,000 copies since it was published in December 2007, and more than 1 million copies of the book have shipped to retail outlets. Rodale has developed a mobile application for Eat This Not That! and will publish additional books in the series, beginning this month with Eat This Not That! for Kids, which will have a first printing of 600,000 copies. Men’s Health will publish its second Men’s Health Living special issue in December.
The Prevention brand saw a 10.4% increase in revenues compared to the second quarter of 2007. The magazine saw a 6.8% decrease in advertising revenues compared to last year, and advertising pages were down 11.4% over the same period, according to PIB. Revenues for www.Prevention.com were flat compared to the second quarter of 2007. Page views increased by 38.1% compared to the second quarter of 2007, while uniques were up 38.5% over the same period.
Following the tremendous success of the Flat Belly Diet! book and companion site, Prevention has begun to roll out additional Flat Belly Diet! publications, including the Flat Belly Diet! Cookbook by Prevention Editor-in-Chief Liz Vaccariello and Nutrition Director Cynthia Sass, MPH, RD. Prevention held its “Picture of Health” competition in partnership with ABC News Now and announced the winner on ABC-TV’s Good Morning America. Prevention brought its one-day, open-air “Health for Good” Festival to the Cleveland Botanical Garden on May 31.
The Women’s Health brand recorded a 40.4% increase in revenues compared to the second quarter of 2007. The magazine ended the quarter up 89.5% in advertising revenues, and advertising pages increased by 23.7% compared to the same period last year, according to PIB. Revenues for www.WomensHealthMag.com increased by 100.7%, and page views and unique visitors grew by 104.4% and 77.8%, respectively.
Women’s Health will increase its rate base from 1.1 million to 1.35 million, a 23% increase, effective with the January/February 2009 issue. This marks the fifth rate base increase since the magazine launched and is a 238% jump from the launch rate base. In its second year, the brand’s signature event and marketing platform, Are You Game?, returned to New York City and expanded to Chicago. The brand has also been honored with several awards this year. Women’s Health VP/Publisher Mary Murcko was named a MIN Sales Team Leader of the Year in 2008. Women’s Health Australia received two Magazine of the Year Awards from the Magazine Publishers of Australia in the categories of “Launch of the Year” and “Consumer Marketing Campaign of the Year” for the “It’s Good to Be You” campaign. In June, Women’s Health launched the Women’s Health Fit Coach Web site, an online fitness and nutrition program that is tailored to fit any body type, fitness level, or goal with easy-to-use interactive tools and trackers.
Advertising revenues and pages for Best Life magazine were up 38.9% and 22.5%, respectively, according to PIB. Second quarter revenues for www.BestLifeOnline.com increased by 91.2% over the same period in 2007.
In the second quarter, Best Life added 26 new advertisers. The brand continued this year with its signature event, the Best Life Vail Film Festival, in April. For the fifth consecutive year, Best Life delivered a unique marketing initiative that combined travel, the arts, culture, and a platform for presenting the latest in men’s fashion and lifestyle in an exclusive environment. The festival drew more than 5,000 attendees and screened more than 60 films.
The Runner’s World Media Group, which includes Runner’s World and Running Times, recorded a 7.3% revenue increase this quarter compared to the second quarter of 2007. Runner’s World magazine saw an 18.1% increase in advertising revenues and 10.4% increase in advertising pages, according to PIB. Revenues for www.RunnersWorld.com decreased slightly by 2.1%, while page views and unique visitors to the site both jumped by 70%.
Despite an 11% price increase in January 2008, Runner’s World is on track to have its sixth consecutive record year on newsstands. In the past year, according to Spring 2008 MRI results, Runner’s World‘s readership has increased 18% to its highest-ever total audience of 2,548,000. In addition, Runner’s World has the youngest median age out of the top 40 magazines with the highest median household income. Editor-at-Large Amby Burfoot was inducted into the Distance Running Hall of Fame in June.
Revenues for the Cycling Group brand, which includes Bicycling and Mountain Bike, increased by 45.2% over the second quarter of 2007. Advertising revenues for Bicycling magazine were up 2.7% compared to the same period last year, while pages decreased by 4.6%, according to PIB. Revenues for www.Bicycling.com were down 13.2% compared to the second quarter of last year, while page views and unique visitors increased by 20% and 23%, respectively.
Bicycling.com’s online Tour de France coverage drove record traffic to the site in July, with an increase of more than 1 million page views over last year. The site partnered with the Wall Street Journal online, which featured a daily Bicycling dispatch on the Tour de France. In June, Loren Mooney was named the new Editor-in-Chief of Bicycling, effective next month. BikeTown, the brand’s philanthropic initiative, traveled to Afghanistan and distributed bicycles to the Afghan Cycling Federation and an orphanage in Kabul.
Organic Gardening saw a 31.6% increase in advertising revenues, and advertising pages were up by 5% compared to the second quarter of 2007, according to PIB. Revenues for the Organic Gardening brand increased by 71.4% compared to the second quarter of 2007. Revenues for www.OrganicGardening.com increased by 162.7%. Traffic to the site has increased significantly as well, with year-to-date page views up 96% over 2007.
New advertisers this year include Clorox Green Works and Subaru. The Organic Gardening water conservation/community service initiative, WaterWorks, is going strong in its second year. The program is providing water conservation systems and beautification funds to 15 community gardens in North America, including six school gardens and several others that provide food and vocational training to impoverished city-dwellers. The program’s initial sponsors AVEENO and Nature’s Path returned in 2008, and Seeds of Change and Echo Power Equipment joined as additional sponsors.
Rodale Books saw tremendous success in the first quarter, with a 19% 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! has sold more than 600,000 copies, and more than 1 million copies of the book have shipped to retail outlets. The South Beach Diet Supercharged, which was released in April, has been a bestseller for 12 weeks.
Last month, Rodale published the Flat Belly Diet! Cookbook as a follow up to the successful Flat Belly Diet!. Upcoming fall books include Eat This Not That! for Kids, by Men’s Health Editor-in-Chief David Zinczenko and Associate Editor Matt Goulding, Force of Nature by Laird Hamilton, and Intellectual Devotional: Modern Culture by David Kidder and Noah Oppenheim. In addition, Flat Belly Diet! will be available in retail outlets beginning in October.
Revenues for Rodale’s Direct Response Marketing (DRM) group increased by 15.4% 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 22% increase in Rodale’s online subscription services business.
Rodale continues to expand its international presence and is on track to launch 11 new international editions in 2008-the most ever in one year for Rodale-in countries including China, France and Russia. Revenues from international operations through June are up 14% compared to the first half of 2007. Online businesses in the UK, Germany and Australia are driving significant growth, and international brands continue to outperform the market and grow both circulation and advertising, especially in key markets such as the UK, Russia, Latin America, and Germany. Several international editions, including Men’s Health Brazil, Men’s Health Living South Africa, Women’s Health Australia and Best Life South Africa have garnered industry awards this year.
Rodale Marketing Solutions (RMS) announced the renewal and expansion of its marketing agreement with Nissan for its award-winning “Master the Shift” initiative, which highlights the automaker’s official sponsorship of the USA National Track & Field Olympic Trials and other endurance events.
Rodale Custom Publishing was honored with a total of 24 awards for excellence in publishing at the 2008 Magnum Opus Awards and the APEX 2008 Awards, two of the publishing industry’s major competitions.
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About Rodale Inc.
Rodale is a global media company with a heritage, mission and authority dedicated to the health and wellness of the individual, community and planet. Through a broad portfolio of leading media properties, Rodale reaches more than 70 million people around the world through multiple distribution channels, including magazines, books, online, e-commerce, direct-to-consumer and video. 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, and Organic Gardening, and is the largest independent book publisher in the U.S. with a collection of best-selling titles, including Al Gore’s An Inconvenient Truth, The South Beach Diet and Eat This, Not That! Rodale is also a leader in direct-response marketing and has more than 25 million active customers in its database. www.rodale.com.