• Revenues for all of Rodale's operations increased 7.8% compared to 2006
• Advertising pages increased by 14.9% according to PIB compared to 2006, while pages industry-wide declined by 0.8%
• Advertising revenues for the company?s magazines were up 23%, while industry advertising revenues were up 5.9%
• Advertising revenues from magazine-branded Web sites increased by 82.6% compared to 2006
• Revenues from all online activities increased by 70.9% over 2006
• The company acquired more than 5.3 million new customers in 2007
• 13 Rodale Books titles made the New York Times bestseller list in 2007
EMMAUS, PA, and NEW YORK, NY, February 21, 2008Rodale Inc. reported strong revenue growth across its broad portfolio of magazines, online properties, books, and other products.
"Rodale's success in 2007 validates our strategy of building an integrated portfolio of media properties," said Rodale President and CEO Steven Pleshette Murphy. "Our diverse assets give us the resilience to thrive in an uncertain economic climate. Advertising, single copy sales, and book sales all exceeded our goals last year as we saw our overall revenues increase by 7.8% over 2006. But our growing reach extends well beyond retail outlets and the newsstand. Rodale's direct response group sold twice as many products online in 2007 as it did in 2006. Men's Health, Women's Health, Runner's World, and Best Life online all saw triple-digit growth in 2007, and our flourishing international business added eight new titles last year. Whatever the method of customer contact, the common thread is our great content. The recent runaway success of the book Eat This Not That! by Men's Health editor-in-chief David Zinczenko, Prevention's cross-platform Flat Belly Diet program and book, written by Prevention editor-in-chief Liz Vaccariello, as well as our continuing gains in newsstand sales, show that our strategy of delivering best-in-class edit to our customers through multiple channelsso they can access the information they want, when and how they want itcontinues to deliver great results into 2008."
Revenues for all of Rodale's operations increased 7.8% compared to 2006. Magazines and digital activities were particularly strong, and the company accelerated its aggressive online strategy in 2007. Revenues for Rodale's digital initiatives, including its magazine-branded sites, subscription services Web sites, and direct-to-consumer sales through online channels, increased by 70.9% over 2006. Online activities as a percentage of Rodale's total sales nearly doubled compared to 2006. More than one-third of the 5.3 million-plus new customers Rodale added in 2007 were acquired through online channels.
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 an 11.1% revenue increase compared to 2006. Both the brand and the magazine had their most successful years ever in 2007. Magazine advertising revenues increased by 19.4% and advertising pages grew by 11.8% compared to 2006, according to PIB. Revenues for www.menshealth.com increased by 163% over 2006.
In October, the brand was named the #1 brand leader on the Media Brand Leaders Hot List, developed by Mediaweek, Adweek, and Brandweek. In December, Rodale released Eat This Not That! by Men's Health editor-in-chief David Zinczenko and associate editor Matt Goulding. Based on the popular magazine feature of the same name, the book has become an instant success, with more than 800,000 copies in print. Immediately after its release, Eat This Not That! was the top-selling title on Amazon.com, and the book is currently #14 on the USA Today bestseller list. Men's Health raised its rate base to 1,775,000 beginning with the January/February issue, the fifth consecutive increase for the title since 2003.
In 2007, Prevention became the ninth largest circulation consumer magazine in America, up from #10 in 2006, according to the Audit Bureau of Circulations, subject to audit. The magazine experienced a 13.2% increase in advertising revenues compared to 2006, and advertising pages were up 6.9% over the same period, according to PIB. Revenues for the brand were up 3.4% over 2006. In addition, single copy sales of the magazine were up 14.6% in the second half of 2007 compared to the same period in 2006, as filed with the Audit Bureau of Circulations, subject to audit. Online revenues increased by 24.4% over 2006.
At the American Magazine Conference in October, Prevention magazine was named to Ad Age's prestigious "A List" based on its strong circulation, surging newsstand sales, and editorial mix. The brand continued its successful tie-ins with NBC's hit show "The Biggest Loser," including a televised Prevention photo shoot with one of the program's contestants, who was featured on the December cover. Last month, the brand launched the Flat Belly Diet across multiple platforms, including Prevention magazine, www.prevention.com, the subscription Web site www.flatbellydiet.com, and a book written by Prevention editor-in-chief Liz Vaccariello with nutrition director Cynthia Sass, MPH, RD.
According to PIB, Women's Health magazine ended the year up 48.3% in advertising pages and 145.6% in advertising revenues compared to 2006. Brand revenues and online revenues increased by 101.7% and 250%, respectively, over the same period. The magazine also performed extremely well on newsstands, with single copy sales in the second half of the year up 42.7% over the second half of 2006, as filed with the Audit Bureau of Circulations, subject to audit.
In 2007, 116 new advertisers recognized the value of Women's Health as an optimal way to reach healthy, active women. These new advertisers include Dove, L'Oreal, Morgan Stanley, Motorola, Nike, Nissan, Oakley, Puma, Saturn, Visa, Volvo, and VW. The brand's Web site, www.womenshealthmag.com, was named a finalist for a Media Industry Newsletter Best of the Web Awards and is off to a very strong start in 2008, with a record number of page views in January. The brand's first book, Women's Health Perfect Body Diet, launched in December, and a companion DVD was released last month.
Advertising revenues and pages for Best Life magazine were up 61.1% and 37.3%, respectively, according to PIB, and brand revenues increased by 34.9% compared to 2006. The brand saw tremendous growth online, with a 434% jump in revenues for www.bestlifeonline.com in 2007 and a four-fold increase in monthly traffic. Subscriptions to the magazine's e-mail newsletter have tripled so far this year.
New advertisers in the final quarter of 2007 included Apple, Clarins, Diamond Trading Co., Nissan Infiniti, Pioneer, Richemont/Baume & Mercier, TD Ameritrade, and Ubisoft.
The Runner's World Media Group, which includes Runner's World and Running Times, recorded an 11% revenue increase in 2007 compared to 2006. Runner's World magazine saw an 8.2% increase in advertising revenues, while advertising pages remained basically flat with a slight 0.6% decline, according to PIB. Second-half single copy sales of the magazine were up 11.9% over the second half of 2006, as filed with the Audit Bureau of Circulations, subject to audit. Online revenues rose by 121.7% compared to 2006.
Runner's World was the go-to source for consumers and media during last fall's Olympic Time Trials and New York City Marathon, with a record number of unique visitors and page views to www.runnersworld.com. Several of the magazine's editors and its publishing director Andy Hersam provided their expert commentary to numerous local and national media outlets, and editor-in-chief David Willey provided live, on-air coverage of the marathon for WNBC-TV.
Revenues for the Cycling Group brand, which includes Bicycling and Mountain Bike, increased by 2.1% over 2006. According to PIB, advertising pages for Bicycling magazine increased by 6.8% compared to 2006, while revenues were up 12.3%. The bimonthly Mountain Bike closed the year with advertising revenues and pages up by 59% and 64%, respectively, over 2006. Revenues for www.bicycling.com rose by 37.5% in 2007.
Bicycling was nominated for a Media Industry Newsletter Best of the Web Award for its online coverage of the Tour de France. Beginning this month, Bicycling will expand its gear review features, including a new interactive gear finder on www.bicycling.com.
Organic Gardening finished 2007 with advertising page growth of 63% over 2006 and advertising revenues up 68.8%, according to PIB. Revenues for the Organic Gardening brand increased by 8.1% compared to 2006. Single copy sales of the magazine in the second half of 2007 increased by 35.1% compared to the same period in 2006, as filed with the Audit Bureau of Circulations, subject to audit.
A circulation initiative in the fall with Stonyfield Farms added 70,000 new subscribers and strengthened the magazine's partnership with one of the nation's leading organic foods brands. This month, Organic Gardening will team up with the South Beach Wine and Food Festival, famed chef and school lunch advocate Alice Waters, and South Beach Diet's Dr. Arthur Agatston at the Fun & Fit as a Family festival in Miami to promote the connection between healthy eating and educating children about gardening as a source of healthy food.
Rodale Books had 13 New York Times bestsellers in 2007, including The Intellectual Devotional: American History by Noah Oppenheim and David Kidder; The Biggest Loser Cookbook, based on the hit NBC series "The Biggest Loser;" South Beach Heart Program by Dr. Arthur Agatston; LL Cool J's Platinum Workout, by LL Cool J; Positively American by Senator Chuck Schumer; Joy Bauer's Food Cures by Joy Bauer; The Abs Diet for Women by Men's Health editor-in-chief David Zinczenko; The Live Earth Global Warming Survival Handbook by David de Rothschild; and The Complete Travel Detective Bible by Peter Greenberg.
Rodale rang in 2008 with the runaway bestseller Eat This Not That! by Men's Health editor-in-chief David Zinczenko and associate editor Matt Goulding. The Biggest Loser Cookbook and Biggest Loser Fitness have hit the New York Times bestseller list this year. Major spring titles include The South Beach Diet Supercharged by Dr. Arthur Agatston, Boots on the Ground by Dusk by Mary Tillman, Mario Lopez's Knockout Fitness by Mario Lopez, and Steering by Starlight by O, the Oprah Magazine columnist and bestselling author Martha Beck.
Revenues for Rodale's direct-to-consumer group increased by 2.9% compared to 2006, and fourth-quarter revenues for the business were up 55.1% over the fourth quarter of 2006. Rodale's direct-to-consumer group sold twice as many products online in 2007 as it did in 2006. Revenues for Rodale's subscription Web site business increased by 34.2% over 2006.
Rodale added eight international titles in 2007. New editions in the fourth quarter included Women's Health Australia, Women's Health Latin America, Runner's World Mexico, and Prevention Romania. Runner's World France and Poland will launch later in the first quarter of this year, and Rodale will continue to make inroads in key growing markets with new editions of several titles in Russia, Brazil, and China planned for 2008.
Rodale Marketing Solutions (RMS) partnered with Scripps to create a cross-book and televised promotion for Dodge Caravan, with custom advertorials running in Prevention, Women's Health, Bicycling, and Runner's World and promotions on the Food Network, DIY, and Fine Living to reach their affluent, educated, and active audiences.
Rodale Custom Publishing added Lamaze International and Idearc as clients in the fall of 2007 and created a new magazine for Kraft, Good Eating, Good Living. In November, the group won five Pearl Awards, the highest recognition in the industry, for editorial, strategic, and design excellence across several of its publications, including Little Brown Book (Bloomingdale's), You24 (24 Hour Fitness), and Diane (Curves International).