Blog Post

Earnings: McGraw Hill Profits Slide 23 Percent; BW’s Global Ad Pages Down 34.3 Percent

McGraw Hill’s Q2 troubles can’t all be blamed on the falling advertising at BusinessWeek, though it does seem indicative of its wider problems. The company’s profits skidded 22.7 percent to $164.1 million ($0.52 cents per share) from Q208’s $212.3 million ($0.66 cents a share). Revenue in the quarter fell 12 percent to $1.47 billion, below Thomson Reuters’ analyst consensus, which anticipated earnings of $0.55 with revenue of $1.54 billion.

Although not the largest part of McGraw Hill, the Business-to-Business Group declines contributed greatly to McGraw Hill’s poor performance. BtoB, which includes Aviation Week, J.D. Power and Associates, McGraw-Hill (NYSE: MHP) Construction, Platts and BusinessWeek, saw revenue decreased by 10.2 percent to $215.8 million. And as McGraw Hill ponders selling BusinessWeek, the 34.3 percent decline in the mag’s global edition ad pages is not likely to help it attract many buyers.

2Q 2009 2Q 2008 Analysts’ Estimates For 2009
EPS $0.52 $0.66 $0.55
Net Income $164.1M $212.3M
Revenue $1.47B $1.63B $1.54B

Earnings release | Webcast (8:30 AM EDT)