October 5, 2009 12:01 PM
- Text
Valassis Again Touts Its Weakest Revenue Drivers as the Future of the Company
(MoneyWatch) Valassis went to the Deutsche Bank Leveraged Finance conference on Oct. 1 and again touted its two weakest business segments as the future of its business. (BNET has harped on this issue before.)
In its presentation, the company showed revenue numbers indicating that that "Neighborhood targeted" and "Free-standing inserts" are its most robust revenue drivers. Both involve newspaper coupons and ads; and both segments are flat through Q2.
The same presentation showed "Shared Mail" and "International, Digital Media & Services" as down 11.6 percent and 18 percent in revenue, respectively (Digital is only up 9 percent if you exclude "discontinued operations"). Digital accounts for only $73 million of Valassis' $1 billion YTD revenue. Here's the chart:
(Click to enlarge.) One might assume that Valassis would be leaning more heavily on the FSI and Neighborhood segments of its business, especially given the collapse of the shared mail market. But no. The presentation says:
In its presentation, the company showed revenue numbers indicating that that "Neighborhood targeted" and "Free-standing inserts" are its most robust revenue drivers. Both involve newspaper coupons and ads; and both segments are flat through Q2.The same presentation showed "Shared Mail" and "International, Digital Media & Services" as down 11.6 percent and 18 percent in revenue, respectively (Digital is only up 9 percent if you exclude "discontinued operations"). Digital accounts for only $73 million of Valassis' $1 billion YTD revenue. Here's the chart:
(Click to enlarge.) One might assume that Valassis would be leaning more heavily on the FSI and Neighborhood segments of its business, especially given the collapse of the shared mail market. But no. The presentation says:
As newspaper coverage declines, Shared Mail and Online are logical and effective solutions for newspaper-delivered content.This may indeed be true in the long run. But it isn't right now.
- See BNET's previous coverage of the in-store marketing wars:
- Valassis Gives NCH Boss Husselbee a New Car and Free Gas Through 2010
- Insignia Uses Valassis Trial to Bludgeon News America in Minn. Federal Case
- Valassis v. NAM Federal Trial Set for February; Judge Denies Pretrial Motions
- News America Talks Tough on Valassis Appeal But Borrows $1B, Just in Case
- Clients Overcharged by News America Listed in Court; Sara Lee: NAM "Is Raping Us and Enjoying It"
- News America Marketing Q2: Numbers Support Valassis' Monopoly Case
- News America Marketing's Carlucci Is Touchy About The Untouchables
- Valassis Q2: "We Have Hit Bottom," Says CEO Schultz; Legal Bills 23% of Profits
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