Primedia net income drops amid rent opportunities
Real estate magazine and Web publisher Primedia saw a Q3 net income drop of $381.8 million, which the company said was related to the sale of its Enthusiast Media segment in May 2007. The company reported net income of $12 million in Q3 compared to $393.8 million a year ago. Revenue in the quarter was also down 4.9 percent to $76.4 million from $80.3 million in Q3.
Primedia, nevertheless, has an opportunity to capitalize on the weak economy as home buyers put off purchase plans and stick it out as renters. Two of Primedia’s biggest print and online books are Apartment Guide, ApartmentGuide.com and Rentals.com. The rental unit, which represents 85 percent of Primedia’s total ad revenues, was up 2.3 percent to $53.6 million from $52.4 million in Q307. Revenue from Rentals.com, grew 8.9 percent sequentially from Q2.
