Demand Media sees record revenue and page views

Online content provider Demand Media has reported record revenues in 2011 and expects further growth over the coming year - despite taking a hit early last year when Google changed its search algorithm.

The group, which publishes sites including eHow.com and provides online content for a range of newspaper publishers including USA Today and the San Francisco Chronicle, reported total revenue in 2011 of $324.9 million, up 28 per cent on the previous year. Revenue at the group's content and media division was up 37 per cent to $193 million over the same period.

Adjusted net profit was up 38 per cent year on year to $21.9 million, and the total number of page views across the network of sites rose by 26 per cent, from 8.23 billion to 10.38 billion.

Demand Media chairman and chief executive Richard Rosenblatt said in the results release: "2011 finished strong. We enter 2012 positioned to expand our existing business lines while investing in areas where we see significant future growth."

Chief financial officer Charles Hilliard added: "Demand Media's record 2011 financial performance, while navigating early year search algorithm challenges, underscores the strength of our complementary advertising and subscription businesses."

The group is aiming for double-digit percentage growth in revenue this year, setting a target of $351-$358 million for the full year.

Demand Media was founded in 2006 and floated last year, with a valuation of more than $1.5 billion (£920 million). The network claims a worldwide audience of more than 100 million unique users and employs about 50 editorial staff and hundreds of freelances.

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