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11

[[underline]]SMITHSONIAN MAGAZINE[[/underline]]

First half year financial results of the [[underline]]Smithsonian[[/underline]] Magazine have encouraged us to boost our estimate of its FY 1973 gross revenues by 5% over the original budget to a new projection of $4,425,000. This would be 30% higher than the $3,411,000 revenues of FY 1972. A net surplus of $125,000 or more for the year should be achieved, compared with the practically break-even gain of $2,500 last year.

Subscriptions continue to grow and are now estimated to be 380,000 by June 30, 1973, up from 310,000 a year earlier. Renewal rates and promotional returns continue to compare very favorably to those for other magazines. They are now closely in line with goals of 55% renewal for first-year members, 75% renewal for longer-term members and 1-1/2% acceptables from promotional mail-outs.

Advertising revenues seem likely to double those of last year -- $830,000 in FY 1973 vs. $421,000 in FY 1972 and $210,000 in FY 1971. This is being aided by our ability to boost again next month the guaranteed minimum subscription from 300,000 to 350,000, an action which carries with it a 175% increase in advertising rates.

A very favorable review of the grwoth and status of the magazine by Philip H. Dougherty in the N. Y. TIMES on December 5, 1972 gives further, impartial testimony to the fact that [[underline]]Smithsonian[/underline]] has arrived.