Readers Digest US sees sales drop 17%

<p>Sales for Reader&#39;s Digest fell 17.3% to $134.2m (&pound;91.3m) in the first quarter, due in part to lower book sales and lower sales across its trade business.<br /><br />According to <a href="http://www.publishersweekly.com/pw/by-topic/industry-news/financial-repo... target="_blank"><em>Publishers Weekly </em></a>the US publisher reported revenues for the three months to 31st March, down by over $35m to $413.9m compared with the same period last year.<br /><br />The company blamed the fall in revenue on falling sales primarily in the home and garden and general interest categories and lower sales across its trade business. The company also suffered from a reduction in the circulation rate of the <em>Reader&#39;s Digest</em> magazine.<br /><br />Reader&#39;s Digest, which emerged from bankruptcy protection in February this year, managed to cut its operating loss from $499.3m to $27.1m. Shortly before emerging from bankruptcy, the company separated itself from its UK subsidiary, which went into adminstration as a result. Readers Digest UK was rescued thanks to a management buy-out in April. </p>