For the second quarter ended June 30, marketing services firm Valassis reported revenues of $243.1 million, up 20% from the $202.6 million reported in the second quarter of 2002.
Second-quarter net earnings were $27.5 million, down 18.6% from the $33.8 million reported in the second quarter last year.
For the six months ended June 30, revenues were $448.2 million, up 10.3% from the $406.3 million posted for the period last year. Net earnings were $53.5 million, down 19.4% from the $66.4 million reported in the first half of 2002.
Alan F. Schultz, CEO, said in a statement that the company still faced “intense competitive pricing” in the co-op free standing insert market. FSI revenue was down 7.5% for the quarter, to $129.3 million. Run of press advertising, however, was up 100% to $15.4 million, due to an increased sales focus on this customer base.
Revenues for products targeted around geographic and demographic clusters was up 42.3% for the quarter, to $64.3 million. A strategy to develop customers in new segments such as specialty retail contributed to the growth of the solo insert and polybag sampling businesses, said MaryAnn Rivers, vice president of U.S. sales and marketing.
Revenues in the company’s one-to-one group Valasis Relationship Marketing Systems increased 21.3% to $9.1 million. The increased was attributed to the consolidation of the division starting last July.
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