HotTopics: Financial Performance Scorecard, Full Year 2005: Information Industry Entering Period Of Steady, But Not Stellar, Growth

Author: Chuck Richard, Vice President & Lead Analyst

The Outsell 100 Company Monitor(SM) financial scorecard tracks the performance of 100 public information companies that generate $126 billion in revenue, 41 percent of the $308 billion information industry. The resulting benchmarks, trends, and leading indicators provide unparalleled insight into the performance of the information industry as represented by these 100 firms and offers segment

- and company-specific data and insights. In 2005, the Outsell 100 companies totaled $126.1 billion in revenue overall, an 8.8 percent increase from $115.8 billion the previous year. Following a three-year pattern of doubling its total growth rate each year, Outsell 100 growth rates have declined in all but one quarter since the beginning of 2004. In the wake of a strong recovery from the downturn that began in 2000 and lasted into early 2002, the information industry is now heading into a period of steady growth at a slower pace. This HotTopics identifies the winners and losers of 2005, including "Rising Stars" CNET, McGraw-Hill, and CoStar, and "Sinking Stones" A.D.A.M., Greenfield Online, Harris Interactive, and Journal Register. Given the slowing growth projection for 2006, the Scorecard sets new priorities for information providers and publishers for this year, including continuing to grow revenue, maintaining profitability, investing in growth opportunities and acquisitions, and using market appreciation for partnerships and acquisitions.