To: GalSal who wrote (11964 ) 4/20/1999 11:33:00 PM From: Sonny Bui Respond to of 41369
April 20, 1999 08:08 PM DES MOINES, Iowa, April 20 (Reuters) - Magazine publisher Meredith Corp. MDP reported better-than-expected third quarter profits on Tuesday and signed a deal with America Online Inc. AOL to extend its presence on the Internet. The company, which publishes Better Homes and Gardens and Ladies' Home Journal, among others, said net earnings for the quarter ended March 31 rose to a record $22.1 million, or 41 cents per share, from $20.1 million, or 37 cents per share, in the same period last year. The earnings topped the 40 cents per share expected by analysts polled by research firm First Call Corp. Reported revenues increased to $265.1 million from $260.2 million in the prior year. "We are performing well in fiscal 1999 and our commitment to optimizing shareholder value is reflected in the company's continuing earnings growth," Meredith Chairman and Chief Executive Officer William Kerr said in a statement. Operating profit at the company's publishing unit rose 10 percent on double digit revenue gains at several of its magazines, Meredith said. In Meredith's broadcasting unit, operating profit and reported revenues rose 10 percent in the quarter. When adjusted for the acquisitions of WGNX-TV in Atlanta and WFSB-TV in Hartford, Conn., revenues rose 5 percent. Separately, Meredith agreed to provide content from its family-oriented magazines to AOL's online services. AOL's 17 million members will gain access to cooking, gardening, health, family finance and lifestyle information provided by Meredith magazines including Better Homes and Gardens, Ladies' Home Journal, Family Money and Crayola Kids. As part of the deal, Better Homes and Gardens will sponsor a new AOL recipe database including a collection of Better Homes and Gardens' recipes and content from four Meredith Web sites will be integrated on other AOL properties, including CompuServe, AOL.COM and AOL's Digital City. Meredith shares closed up $2.31 at $32.94 Tuesday on the New York Stock Exchange. ((Chicago equities news, 312 408 8787, chicago.equities.newsroom@reuters.com)) REUTERS