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10

Further explanation of private fund finances disclosed that the [[underlined]] Smithsonian [[/underlined]] Magazine continues to do well, both financially and in promoting educational efforts of the Institution. Magazine revenues will be about $3,350,000 this year compared to $2,418,000 for the previous year and it is expected to show a slight profit compared with the loss of $209,000 in the fiscal year 1971.

The estimate for fiscal year 1972, however, includes the receipt of a $100,000 settlement from the computer firm previously handling subscription and billing records. It should be noted, also, that the magazine could be showing a substantial profit this year except for the fact that it is now in the cycle of plowing back a massive one-third of revenues into circulation-building efforts to achieve quickly a higher level of renewing subscribers.

Subscriptions, now over 300,000, are still projected at about 315,000 for June 30, 1972, compared with 247,700 a year earlier. Despite some softening in returns from circulation promotion (from about 2.25% down to 1.5%) they still compare favorably with returns for other magazines. Renewals by our two-year, or charter member, subscribers is at the extraordinary level of 88%. 

Advertising revenues for the full fiscal year 1972 should closely approximate the budget goal of $410,000 compared with $197,000 in fiscal year 1971. The increase in circulation has permitted higher advertising rates to be placed in effect beginning in February 1972.