S&P Issues Positive Report on Meredith Hispanic Ventures

Standard & Poor's recently published a report praising Meredith's Hispanic efforts. S&P has a Buy/Hold recommendation on Meredith. “We believe magazine publishers will continue developing special interest publications that target growing U.S. demographic segments, such as Spanish language,” notes analyst James Peters. He adds that one of Meredith's primary strategies is to expand its publishing base by broadening its magazine portfolio, extending and developing its brands, capturing the potential in the Hispanic market, and expanding its book and custom publishing business. Last year Meredith launched Siempre Mujer (bimonthly, circ. 350,000, retail price $2.99, Spanish).

In July 2005, Meredith acquired Parents, Family Circle, Fitness, Child and Ser Padres (bimonthly, circ. 510,000, Spanish) magazines from Gruner + Jahr for $350 million, which the company believes supports its initiative to attract younger women to its family of readers. Meredith is one of the largest Hispanic publishers in the U.S. In the parenting magazines category, publishing Ser Padres, Healthy Kids en Español (quarterly, circ. 50,000, free, Spanish) 12 Meses (biannual, circ. 300,000, free, Spanish) and Espera (biannual, circ. 375,000, Spanish). Meredith also creates marketing programs for companies such as Johnson & Johnson and McDonald's