Reporting results for the first time since it emerged from bankruptcy protection in February, Reader’s Digest had total revenue of $413.9 million in the first quarter ended March 31, down from $460.7 million in the comparable period a year ago. The operating loss was slashed to $27.1 million from $499.3 million. As part of its restructuring plan, which greatly reduced its debt, RD has changed its fiscal year from year ending June 30 to a calendar year.
Sales in the U.S. segment fell 17.3%, to $134.2 million, due in part to lower book sales, primarily in the (Home & Garden and general interest categories) and lower sales across its trade business. The decline also reflected closing a number of magazines, reducing the guaranteed circulation rate of the flagship Reader’s Digest magazine from 8 million to 5.5 million and cutting the number of issues published from 12 to 10. International sales fell 10.9%, to $231.9 million, with lower sales of books, music and video in most countries. The company also separated itself from its U.K. subsidiary, which filed for bankruptcy in the quarter. Sales in the Lifestyle & Entertainment Direct unit jumped to $60.7 million from $26.8 million, attributed to strong sales of fitness products.
