In 2009, magazines were hit hard by the recession – stock prices and money towards advertising significantly decreased. As time passes by, 2010 has proved to usher in a period of economic growth and improvement in the value of magazine publishing companies.
In comparison to last year, stock prices have positively increased. “Time Warner, parent of mega consumer publisher Time Inc., saw it’s stock price hit $31.89 by 10 a.m. Tuesday, up nearly 54 percent from a low of $20.71 over the last 52 weeks.” In addition, this morning, Martha Stewart’s Omnimedia’s stock price reached $5.41, which is more than twice its 52-week low of $2.66. Other companies that received privileged stock increases were Playboy Enterprises (100% increase) and Meredith Corp. (98% increase.) A company spokesperson from Meredith Corp. claims that the company’s financial performance is shaped not only by an increase in stock prices, but by investor confidence.
Seth Alpert, partner and managing director at AdMedia Partners, said, “…investors simply viewed these companies too negatively a year ago.” Aside from profitability and revenue improvement, is confidence the thing that has caused magazine financial success to wane over the past year? Partially, but not quite. Investors have decided to reevaluate their stock and business prospects, which has subsequently bolstered stock prices. Publishers also reduced cost structures, which aid in strong returns and an increase in effective advertising.
As we slowly make our way out of the recession and investors aim to make better company decisions, hopefully media companies will reap better results.
Stephanie Says 