Weddings lifestyle company The Knot pointed to a challenging economic environment, as it posted a 52.1 percent decline in Q2 profits, as net income was $2.3 million ($0.07 per basic and diluted share) from last year’s $4.8 million ($0.15 per basic and diluted share). Revenues barely rose to $28.7 million from Q207’s $28.5 million.
– National online revenues were up modestly to $5.4 million and $10.1 million for the three- and six months ended June 30, 2008, respectively, compared to $4.9 million and $8.4 million for the corresponding periods in 2007.
– Local online revenues also recorded small gains of $8.0 million and $16.3 million for the three and six months ended June 30, 2008, respectively, as compared to $7.6 million and $14.9 million for the corresponding periods in 2007.
– Merchandise revenue from the sale of wedding supplies was up 10 percent, but registry services remained relatively flat compared to 2007. Publishing and other revenues declined by 22 percent, with the majority of the decrease resulting from the timing of the release of The Knot Best of Weddings publication. This magazine was released in Q1 this year, while last year it was published in Q2. Publishing and other revenues dropped 7 percent in the first half of the year versus the same period in 2007.
– Conference call: CEO David Liu sought to assure investors that the bridal business is pretty recession-proof. Unfortunately, some of the businesses The Knot depends on for its online advertising are not so immune and have cut back. Still, he said he believes the company’s slowdown is temporary.