The Economist Group reports record profit on the back of strong circulation growth of The Economist to record levels and success in the Group's other businesses
- Operating profit up 26% to £56m
- Revenue up 17% to £313m
- Full year dividend of 97.3p per share, an increase of 8%
Our results show the strengths of our brands and our business
- The Economist's worldwide circulation grew 6.4% to 1,390,780 (July-December 2008 ABC). It was named Magazine of the Year by Advertising Age and topped Adweek's Hot List for the second year running
- Economist.com's performance has been strong, driven by a strategy to make it a place for intelligent debate; advertising revenue is up 29% and page views 53%
- The Group's most recent acquisition, Capitol Advantage, purchased last July to sit alongside our Washington, DC businesses Roll Call and GalleryWatch, has performed beyond expectations and will create long-term value and growth
- A regionalised structure of the Group was introduced last July by new CEO Andrew Rashbass. This has enabled more efficient use of resources and made it easier for clients to work with the Group. All regions turned in strong performances
- In Asia, the Group's investment in India has shown good results, with The Economist's circulation in India up 37%. In China, the research capabilities of the Economist Intelligence Unit are helping organisations to operate more effectively through regional forecasts
- In the US, The Economist's circulation growth has been especially robust
- In both Continental Europe and Middle East and Africa, advertising revenues were very strong, with MEA increasing 39%. Revenues at European Voice grew 23% and conference business EuroFinance produced record revenues
In the UK, readership of The Economist continues to grow, up 19% over three years according to the 2008 British Business Survey. Revenues of the quarterly lifestyle magazine Intelligent Life rose by 30%
Sir Robert Wilson retires as chairman of the Board at the AGM after six years. He will be
succeeded by Rupert Pennant-Rea
The year ahead will be challenging, but we are well placed to continue to outperform the market
Andrew Rashbass, chief executive, said: "These results demonstrate once again that great brands delivering real value to readers and advertisers thrive even when the economic cycle turns and when the structure of the industry is evolving in the way information and advertising are consumed and delivered."
Chris Stibbs, finance director of The Economist Group, said: "We're pleased to report another strong performance that demonstrates the quality and relevance of our brands all around the world. Our readers, advertisers and other customers continue to choose our brands despite and in some ways because of the turbulence in our various markets."
(June 22nd 2009)