Reader’s Digest experienced a 4% revenue decline in its fiscal 2004 first quarter, largely because of a reduction in international marketing.
The Pleasantville, NY-based publisher reported revenue of $495 million, compared with $517 million for the same period last year. The quarter ended Sept. 30.
In addition, the firm suffered a net loss of $13 million, up from $5 million in the first quarter of fiscal 2003.
The company attributed the revenue decline mostly to a 6% drop in international business to $216 million. That, in turn, was due to a reduction of marketing activity and adverse business conditions in many overseas markets.
Among the items affecting the bottom line were $8 million in incremental expenses. These included non-cash items like lower income from an over-funded U.S. pension plan, and higher costs related to restricted stock and post-retirement healthcare, the company said.
However, Reader’s Digest also reported a $3 million gain related to the sale of its interest in Schoolpop Inc.
CEO Thomas O. Ryder said in a statement that the first-quarter results were “in line with management expectations. We remain committed to our plan to return to year-over-year revenue and operating profit growth by fiscal 2005.”
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