Primedia posts higher earnings, b-to-b segment struggles

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New York--Primedia Inc. Thursday posted second-quarter net income of $88.9 million, including a $104.3 million gain on the sale of Seventeen and related assets, compared with a net loss of $34.4 million a year earlier.

Consolidated sales from continuing businesses dipped to $365 million in the second quarter, from $384.2 million a year earlier.

Results from Primedia’s b-to-b segment (Business Magazines & Media and Primedia Workplace Learning) were weak. B-to-b segment sales from continuing businesses were $74.8 million, down 19% from the second quarter of 2002. Sales at trade magazines and trade shows declined by about $7 million.

B-to-b segment earnings before interest, taxes, depreciation and amortization (EBITDA) were $6.9 million, down 56.6% from a year earlier. Due to continued weakness in the segment, Primedia lowered its target for full year 2003 sales to between $1.46 billion and $1.48 billion, down from a range of $1.50 billion to $1.51 billion.

--Sean Callahan

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