Rodale Reports 2008 Third Quarter Results

FOR IMMEDIATE RELEASE
CONTACT:

Robin Shallow
914-841-5572
Robin.Shallow@Rodale.com

RODALE REPORTS 2008 THIRD QUARTER RESULTS

·Total revenues January-September 2008 are up 2.5% compared to the same period last year

·Revenues for the third quarter decreased by 5% compared to the third quarter of 2007

·Revenues from all online activities increased by 22.7% over the third quarter of 2007, and page views and uniques for Rodale’s sites increased 81% and 55%, respectively, compared to the same period last year

·Since hitting the shelves in December 2007, Eat This, Not That! has sold more than 1 million copies

·Rodale print advertising revenues were down 1.7% in the third quarter compared to an industry-wide decline of 8.9%, according to PIB

·Revenues from international operations for the third quarter increased 5.8% over the third quarter of 2007

EMMAUS, PA, and NEW YORK, NY, November 11, 2008 – Rodale Inc. reported its third quarter 2008 results today. Revenues for the company decreased by 5% compared to the third quarter of 2007, though total revenues January-September 2008 are up 2.5% compared to the same period last year. Year-to-date growth has been led primarily by robust sales of Flat Belly Diet! and Eat This, Not That!, the continued growth of the Women’s Health and Best Life brands, a 22.7% increase in the company’s digital activities, and the strength of Rodale’s international operations.

“This is the year where the ability of our great magazines and digital properties to attract so many readers dovetailed with our unique capability to turn these readers into valuable customers through our direct response efforts,” said Rodale President and CEO Steven Pleshette Murphy. “So while our advertising is affected by the market downturn, we’ve been able to achieve our profit goals by delivering books, magazines, and online products digitally to our growing global audience. Rodale has also scored two big wins with our books Flat Belly Diet! and Eat This, Not That!, each of which will sell more than 1 million copies in 2008.”

Revenues for all of Rodale’s digital initiatives, including its magazine-branded sites, subscription service Web sites, and sales of magazines, books, and DVDs through online channels increased by 22.7% compared to the third quarter of 2007. Revenues for online subscription Web sites increased by 18.6%. Revenues from books sold online increased by 32.9%, while revenues from online magazine subscriptions increased by 31.9%.

Online advertising revenues for Rodale’s magazines increased by 18% compared to the third quarter of last year. Print advertising revenues were down 1.7% while revenues industry-wide saw an 8.9% decline, according to PIB. Advertising pages for Rodale magazines were down 9% from the third quarter of 2007, while pages industry-wide were down 12.9%. Year-to-date, Rodale’s print advertising revenues grew 5% over 2007, while print advertising revenues industry-wide have declined 5% over the same period, according to PIB.

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 DVDs.

Revenues for the Men’s Health brand increased 10.7% over the third quarter of 2007, with strong sales of Eat This, Not That! by Men’s Health Editor-in-Chief David Zinczenko and Associate Editor Matt Goulding helping to drive growth. Magazine advertising revenues decreased by 11% and advertising pages were down 14.8% compared to the third quarter of 2007, according to PIB. Advertising revenues for www.MensHealth.com in the third quarter of 2008 increased by 30% over the same period last year, and page views and uniques were up by 77% and 33%, respectively.

The Prevention brand saw an 8.2% decrease in revenues compared to the third quarter of 2007. The magazine saw a 4.7% decrease in advertising revenues compared to last year, and advertising pages were down 10.8% over the same period, according to PIB. The softness in print advertising was offset by strong sales of Flat Belly Diet! by Prevention Editor-in-Chief Liz Vaccariello and Cynthia Sass, MPH, RD, and growth in online revenues for www.Prevention.com, which increased by 30% compared to the third quarter of 2007. Page views increased by 116% compared to the third quarter of 2007, while uniques were up 64% over the same period.

The Women’s Health brand recorded a 38% increase in revenues compared to the third quarter of 2007, and continues to perform exceedingly well on the newsstand, online, and internationally. The magazine, which will be raising its rate base to 1.35 million effective with the January/February 2009 issue, ended the quarter up 28% in advertising revenues. Advertising pages decreased by 6% compared to the same period last year, according to PIB. Revenues for www.WomensHealthMag.com increased by 125%, and page views and unique visitors grew by 160% and 141%, respectively. Women’s Health also continues to grow internationally and is on target to launch five editions in 2008 in markets including Argentina, New Zealand, and Brazil.

The Best Life brand recorded an increase in revenues of 30.4% in the third quarter over the same period in 2007. Advertising revenues and pages for the magazine were up 2.4% and down 12%, respectively, according to PIB. Third quarter revenues for www.BestLifeOnline.com were down 39%. Page views and unique visitors grew by 82.5% and 60%, respectively, over the same period in 2007.

The Runner’s World Media Group, which includes Runner’s World and Running Times, recorded a 10% revenue increase this quarter compared to the third quarter of 2007. Runner’s World magazine saw a 4.8% decrease in advertising revenues and 9.9% decrease in advertising pages, according to PIB. Running Times saw an 18% decrease in revenue and a 3.6% decline in pages from the third quarter 2007. Revenues for www.RunnersWorld.com increased by 14.7%, while page views and unique visitors to the site jumped by 63% and 68%, respectively.

Revenues for the Cycling Group brand, which includes Bicycling and Mountain Bike, decreased by 22.8% over the third quarter of 2007. Advertising revenues for Bicycling magazine were up 7.1% compared to the same period last year, while pages remained flat, according to PIB. Mountain Bike saw a 123% increase in revenues and a 96% increase in pages from the third quarter of 2007. Revenues for www.Bicycling.com were down 26% compared to the third quarter of last year, while page views and unique visitors were up 21% and 52%, respectively.

Organic Gardening saw a 25.7% increase in advertising revenues, and advertising pages were up by 2.5% compared to the third quarter of 2007, according to PIB. Revenues for the Organic Gardening brand increased 28.6% compared to the third quarter of 2007. Revenues for www.OrganicGardening.com increased by 20%. Traffic to the site has increased as well, with third quarter page views and unique visitors up 43% and 37%, respectively, over 2007.

Rodale Books saw a decrease of 15% in the third quarter of 2008 versus 2007 across both trade and direct channels. Since hitting the shelves in December 2007, Eat This, Not That! has sold more than 1 million copies, with 1.5 million in print. Flat Belly Diet! sold approximately 65,000 copies after 1 week in retail outlets and has already hit The New York Times, Wall Street Journal, Publishers Weekly, and USA Today bestseller lists. The South Beach Diet Supercharged, which was released in April, has been a bestseller for 20 weeks.

Revenues for Rodale’s Direct Response Marketing (DRM) group decreased by 17% compared to the same period last year, which can be attributed to a decrease in direct mail volume across all products as a result of Rodale’s transitioning from offline to online direct channels.

Rodale continues to expand its international presence, launching six international editions in the third quarter of 2008 in countries including Turkey, New Zealand, Argentina, and France. Women’s Health is on target to launch five new editions in 2008 alone, with six more slated for launch by the end of 2010. Revenues from international operations through September are up 11.4% year to date and up 5.8% over the third quarter in 2007.

Rodale Custom Publishing and Thrivent Financial for Lutherans have joined forces to publish Thrivent magazine, a quarterly membership publication. Thrivent Financial is a not-for-profit financial services organization serving nearly 3 million members with headquarters in Minneapolis, MN and Appleton, WI. Recent custom programs include Born Early, an annual magazine for MedImmune, maker of the pharmaceutical Synagis, distributed in-hospital to parents of pre-term babies. Rodale Custom Publishing also partnered with Bloomingdale’s in the publication of the Little Pink Book, the centerpiece of Bloomingdale’s second annual promotion in support of the Breast Cancer Research Foundation and Breast Cancer Awareness Month. Custom Publishing produced the 2008 USA Track & Field Trials Commemorative Issue, a Runner’s World Special, distributed compliments of Nissan USA, for the U.S. Olympic Trials, part of a comprehensive Nissan/Rodale integrated program.

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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 United States with a collection of bestselling 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

Media Inquiries

EVP, Communications Robin Shallow Robin.Shallow@Rodale.com 212-573-0474
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