Rodale Reports 2009 Second Quarter Results

EMMAUS, PA, and NEW YORK, NY, August 21, 2009—Rodale Inc. reported its second quarter 2009 results today. Revenues for the company decreased 26.3%, compared to the second quarter of 2008, largely due to the industry-wide downturn in advertising revenues. Offsetting this decline was the strong performance of Rodale’s book division, which saw an 8.9% increase in the first half of 2009, as well as robust results for Women’s Health, which saw brand revenues increase by 5.5% and print advertising revenues increase by 11.1% in the second quarter, compared to the same period last year.

“Like all of our peers, we have seen a downturn in our advertising revenues,” said Rodale President and CEO Steven Pleshette Murphy. “However, revenues from our books division are up 8.9% compared to the first half of 2008, and these unexpectedly strong results are successfully buttressing our performance this year.”

This quarter, Rodale also continued to move to where its customers are with impressive speed and success. Rodale.com, the company’s all-new flagship Web site featuring “Where Health Meets Green” daily news, officially launched on Earth Day, April 22. In its first two months, Rodale.com built an audience of more than 80,000 daily newsletter subscribers, and a number of its original news stories were featured by MSN. Rodale.com Editor-In-Chief Maria Rodale’s blog, Maria’s Farm Country Kitchen, was launched concurrently and is being syndicated three times per week on The Huffington Post. In June, Men’s Health launched its first iPhone application, which rapidly became one of the most popular health and fitness applications on the market, and Women’s Health and Runner’s World recently followed suit. In addition, Runner’s World debuted its Marathon Challenge premium online content Web site. These products, along with a number of new initiatives Rodale’s brands will be rolling out in the year ahead, will allow Rodale to capitalize on its unwavering consumer demand as well as the new technologies and business models that are changing the media industry.

Magazines and Web Sites
Rodale print advertising revenues decreased 17.1% in the second quarter of 2009, compared to an industry-wide decline of 21.3%, according to PIB. Advertising pages decreased by 25.8% in the second quarter of 2009, compared to an industry-wide decline of 28.9%, also according to PIB. Online advertising revenues for Rodale’s magazines decreased 32.8%, compared to the second quarter of 2008. Page views and unique visitors across all magazine-branded Web sites increased 15% and 8%, respectively, over the second quarter of 2008, according to Coremetrics.

Rodale Books
Revenues for Rodale Books have increased 8.9%, compared to the first half of 2008, due in large part to robust sales of the Eat This, Not That! franchise (including Eat This, Not That! Supermarkets and Eat This, Not That! For Kids), which has sold more than 3.5 million copies to date. Books in the Flat Belly Diet! franchise, including Flat Belly Diet! and Flat Belly Diet! Cookbook, have sold more than 1.8 million copies across both trade and direct channels. The End of Overeating: Taking Control of the Insatiable American Appetite by Dr. David A. Kessler, former commissioner of the FDA under presidents George H.W. Bush and Bill Clinton, has sold more than 135,000 copies since its launch in late April, and remains a New York Times bestseller.

Brand highlights:

Men’s Health
· Men’s Health announced the launch of its first iPhone application, “Men’s Health Workouts.” The first app by a media brand to take advantage of Apple’s new in-app purchase options, it debuted at #4 in the Health and Fitness category.

· The Eat This, Not That! franchise, which includes Eat This, Not That! For Kids and Eat This, Not That! Supermarket Survival Guide, by David Zinczenko, Men’s Health Editor-in-Chief, and Matt Goulding, Food & Nutrition Editor, has sold more than 3.5 million copies.

· Year to date, www.MensHealth.com page views and unique visitors have increased 15% and 7%, respectively, compared to the first half of 2008, according to Coremetrics.

Women’s Health
· Revenues for the Women’s Health brand increased 5.5% in the second quarter of 2009, compared to 2008. Advertising revenues increased 11.1% in the second quarter of 2009, compared with 2008, according to PIB.

· Year to date, advertising revenues for www.WomensHealthMag.com increased 4.4%, compared to the first half of 2008.

  • Page views and unique visitors to www.WomensHealthMag.com grew by 161% and 193%, respectively, according to Coremetrics. The Web site recorded three back-to-back record-breaking months in terms of unique visitors in 2009.

    Prevention
    · In the first six months of 2009, more than 22 million Prevention-branded products were sold, including magazines, books, SIPs, bookazines, DVDs and subscription services.

    · Flat Belly Diet! by Prevention Editor-in-Chief Liz Vaccariello with Cynthia Sass, MPH, RD, has now sold more than 1.8 million copies.

    · Page views to www.Prevention.com increased 20%, compared to the second quarter of 2008, according to Coremetrics.

    · Since the launch of videos on www.Prevention.com in 2007, video plays have increased 2,000%.

    Runner’s World, Bicycling
    · Runner’s World announced the launch of its Marathon Challenge, an online premium marathon training program built around an exclusive 16-week training plan created by Runner’s World Chief Running Officer Bart Yasso.

    · Bicycling won a National Magazine Award in the Public Interest category for its story “Broken” by David Darlington.

    · Page views and unique visitors to www.RunnersWorld.com increased 8% and 16%, respectively, compared to the second quarter of 2008, according to Coremetrics. Page views and unique visitors to www.Bicycling.com increased 32% and 30%, respectively, compared to the second quarter of 2008, also according to Coremetrics.

    Organic Gardening
    · Year to date, magazine advertising revenues and pages increased 19.5% and 3.2%, respectively, according to PIB.

    International
    Rodale International announced that it will launch Women’s Health South Africa online on September 9. The launch issue of Women’s Health South Africa will be available on newsstands on October 21.

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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, Bicycling, Mountain Bike, 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, Eat This, Not That!, and Flat Belly Diet! Rodale is also a leader in direct-response marketing and has more than 25 million active customers in its database.

  • Media Inquiries

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