Earnings: The Knot: Revs, Ad Sales Up, But Profits Down 24 Percent
This story was written by Tameka Kee.
Profits at weddings lifestyle company The Knot fell to $2.2 million in Q3, down 24 percent from $2.9 million in 2007. It has a nice forward-looking reason for it: it is investing in "strategic initiatives to extend its brands and enhance its technological infrastructure to access a greater market share of ad dollars and commerce revenue in both the weddings and non-weddings portions of its business." Still, online and print ad sales, merchandise sales and overall revenues were up year-over-year. Revenues came in at $27 million, up eight percent over Q307.
Publishing and other revenues (including sales from magazines like The Bump) were up 6 percent from 2007, to $3.8 million. The company's line of branded wedding supplies also did well, with sales up 8 percent to $5.7 million, but revenues from its registry services were down 6 percent year-over-year. The company says it is seeing softness in its local advertising and registry businessesand is lowering its outlook for revenue growth for 2008 to 5 percent to 7 percent.
And yes, it is still not sold.
By Tameka Kee