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Rental Property Management Primedia
Apr 29, 2010: PRIMEDIA Inc. a leading provider of online, print and mobile platforms that provide consumers with tools and information they need to find a place to live, today reported results for the first quarter ended March 31, 2010.
“In our Apartments businesses, we grew our consumer audience, client count and the number of quality leads we provide to our clients. Our Apartments/Rentals Family of Sites was ranked #1 among its competitors in both unique visitors and visits in March 2010, and has maintained a top two ranking since May 2009. We also reinforced our position at the forefront of mobile innovation by launching our Apartment Guide iPad app in early April. We continued to produce more leads for our clients on a quarterly and year-over-year basis, and leads from our Internet and mobile platforms now represent more than 75 percent of the total leads we deliver to our advertiser clients.
“PRIMEDIA has a strong financial foundation, and we will continue to permanently streamline our cost structure, while investing in innovative growth opportunities to enhance long-term shareholder value,” added Mr. Stubbs.
First Quarter Revenue and Operations
Apartments — Apartment Guide, ApartmentGuide.com, Rentals.com and RentalHouses.com
The Apartments division, representing approximately 93% of first quarter 2010 advertising revenue, declined by 5.5% to $49.1 million from $52.0 million in first quarter 2009.
Apartment Guide, including ApartmentGuide.com, increased client count and grew the number of apartment community listings, while revenue declined 5.6%, primarily due to a decline in revenue per community served. The Company anticipates continuing declines in revenue per community served as it increases the number of communities served, at least in the shorter term, as lower effective rents continued to pressure pricing in many markets.
Rentals.com and RentalHouses.com revenue, the Company’s online single-unit real estate rental product line, decreased by 4.1% compared to first quarter 2009, primarily due to a decrease in paid listings through the self-provisioning feature of its websites, partially offset by an increase in the number of listings generated from property managers.
New Homes — NewHomeGuide.com, AmericanHomeGuides.com
Revenue from New Homes, representing approximately 7% of first quarter 2010 advertising revenue, declined by 40.0% to $3.6 million from $6.0 million in first quarter 2009. The Company anticipates continued pressure on this business for the foreseeable future and remains focused on reducing costs to offset expected revenue declines and maintaining close relationships with its advertising clients to best position this business for opportunities as macroeconomic conditions improve.
DistribuTech
DistribuTech, the Company’s distribution function, generated revenue of $6.6 million, compared to $10.4 million in first quarter 2009, a 37.1% decline. This decline was primarily due to the planned reduction of retail locations serviced and the impact of lost business from third-party customers. The Company’s overall distribution strategy is to reduce print distribution costs and eliminate less effective locations, while focusing efforts on retaining and servicing locations that produce the best results for PRIMEDIA advertisers.
Business Trends and Outlook
As measured by leads, the greater proportion of the value the Company now delivers to its clients on a national basis has shifted to its digital products and services, and the Company expects its advertiser clients to increasingly favor more digital products and services in their advertising budgets. In addition, the Company is aggressively pursuing enhancements to its product portfolio to provide more flexibility to its clients, based on specific markets and market segments, to purchase more customized mixes of products, product features and services on a stand-alone and package basis. These enhancements are intended to maximize clients’ advertising ROI and provide an opportunity for the Company to grow revenue as it continues to grow client count.
Given general economic and market conditions, the Company has limited visibility around 2010 revenue. For Apartments, the Company currently expects to see a 5.5% – 6.5% year-over-year decline in second quarter 2010 revenue. The Company also expects year-over-year declines in second quarter 2010 revenue of approximately $1.5 million for New Homes and $2.5 million for DistribuTech.
About PRIMEDIA Inc.
PRIMEDIA Inc. helps millions of consumers nationwide find a place to live through its innovative online, print and mobile solutions. From publishing its flagship advertising-supported Apartment Guide since 1975 to launching industry-leading online real estate destinations such as ApartmentGuide.com, Rentals.com and NewHomeGuide.com, PRIMEDIA continues to simplify the consumer home search and drive leads that result in occupancy for property managers, landlords, new home builders and real estate professionals.
SOURCE PRIMEDIA Inc.
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Primedia Reports First Quarter 2010 Results is brought to you by SimplifyEm Pay Rent Online and Property Management SoftwareYou might also want to read:
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