Reader's Digest: The Longest Goodbye - 'ZIFFPAGE TITLE' (
Page 9 of 9 )
Reader's Digest Base Case">
Reader's Digest Base Case
Headquarters: Reader's Digest Rd., Pleasantville, NY 10570
Phone: (914) 238-1000
Business: Marketer of magazines, books, music
Chief Information Officer: Jeffrey S. Spar
Financials In 2004: Net income of $49.5 million, or 2.1% of its $2.4 billion in revenue. Profit down 62.5% since 2001.
Challenge: Update the heart of its business, its numerically based methods for marketing its products to customers, from a system put in place in November 1969.
Baseline Goals:
Increase cash generated by business to more than $175 million a year, from $162.1 million in 2003.
Realize "low double-digit profit growth" in each of three operating segments. In 2004:
Reader's Digest International operating profit gained 16.3% to $57 million, from $49 million.
Reader's Digest North America gained 16.3% to $71 million, from $61 million.
Consumer Business Services, which include books and home entertainment services, fell 29.7%, to $64 million.
Keep monthly circulation of its Digest, at 10 million or more.
Grow annual revenue, past $2.5 billion.
Projects: Data Analysis 
