Blog Post

Earnings: DJ Electronic Publishing Rev Up 30.1 Percent For 3Q05; Hits 764,000 Subs

Updated to include earnings call: Spurred by the MarketWatch acquisition and strong showings across other properties, the Electronic Publishing unit of Dow Jones turned in a 30.1 percent revenue increase for 3Q05 to $127 million from 97.6 million in 3Q04. Operating income hit $31.7 million, up 46.3 percent from $21.7 million with an operating margin of 25 percent — among the company’s highest — compared with 22.2 percent the previous year. Dow Jones Newswires remains the largest contributor with $67.9 million, more than half of the unit’s revenue, but the real growth is coming from Consumer Electronic Publishing — $43.7 million compared to the MarketWatch-less $19.2 million in 3Q04. In addition to MarketWatch, that group includes, related vertical sites, licensing/business development and radio/audio.
Of note, paid subs to the Online Journal hit 764,000 through Sept. 30, up 9 percent over 3Q04. That number includes net adds of 64,000, the largest net increase since 1Q02 — despite the summer price increase.
More after the earnings call.

mp3logo1.gifUpdate: You can download the audio here (10.9 MB, 1 hour 03 mins)

From the call:

MarketWatch: COO Rich Zannino said, “We’ve nearly completely and fully successfully integrated MarketWatch.” Much of news, IT and back office functions have been integrated with one sales team for the Dow Jones Online Network. The almost total integration makes breaking out MarketWatch difficult so DJ has “recast” the Consumer Electronic Publishing unit’s 2004 revenues to include MarketWatch. That would put 3Q05 online ad revenues up 23 percent and total revenues up 12 percent. Zannino: “We can also say that we have far exceeded our original cost synergy targets and that the combined CEP and MarketWatch is far
exceeding our profit expectations for the third quarter and year-to-date

Earnings release | September numbers | Prepared remarks | Webcast