Reader’s Digest Association’s losses narrow in first quarter

RDA Holding Co., the company which owns Reader's Digest magazine, has reported fewer losses of $27.1

However, its revenues declined 10.2 per cent to $413.9m from $460.7m last year, due to the challenging international economic climate as well as a planned rate base reduction and decrease in the frequency of issues published for Reader's Digest magazine.

RDA's president and chief executive Mary Berner said the company has continued on its path of "improved profitability," as demonstrated by increase in segment operating profit to $22.6m for the combined first quarter, which was driven by strong increases in its Lifestyle & Entertainment Direct and US businesses.

"We emerged from the restructuring process having met our major goal a stronger balance sheet with significantly lower debt," he added. "We were able to achieve these improved results despite challenges posed by the global recession and having operated in Chapter 11 during much of this time."

The company emerged from Chapter 11 bankruptcy in February.