Valassis Communications Inc. (VCI)
J.P. Morgan Technology, Media and Telecom Conference Transcript
May 17, 2012 11:10 AM ET
Bob Recchia – Chief Financial Officer
I’m pleased to welcome Valassis Communications to the J.P. Morgan TMT Conference. Valassis is a leading marketing -- media and marketing services company, both national and local level, reaching $100 million households every week through the mail, internet and store and newspapers. With us today is Bob Recchia, CFO. Thanks for being here Bob.
To start it off, could you give an update on advertising trends you are seeing both for Valassis, specifically in the wider promotional market?
Yeah. Just I would start with Valassis specifically the numbers that we saw in the first quarter are pretty much an indication of what we expect in the first half of the year in terms the trends. And in that, I mean, the businesses that we’ve been doing well and should continue to perform well and the challenge businesses mainly the once we are reliant on consumer packaged goods revenues. I think they are going to continue to be challenge for the first half of the year.
We should see an uptick in our Shared Mail business which is the obviously our driver for the business in Q2. We’ve still got a little bit of time left in Q2 to rapid it up, but I think we’ll see an uptick versus Q1.
Our Clearing business continues to do very, very well that’s the NCH business. We do believe we are seeing a leveling off on coupon redemption is really a function of the decrease in number of coupons that we’ve seen going out from FSI over the past really three quarters are starting to take effect even though rate of redemption has gone up, we are seeing a leveling out there. But we still think that business will continue to perform very well throughout 2012.