I had the pleasure of speaking with Julie Theriault, Director, Corporate Planning & Communications at Steinway Musical Instruments
about their recent switch to using an advisory release to disclose earnings.
When I asked Julie what led Steinway to start doing advisory releases instead of posting the full release on the wire, she answered that "cost savings was the main driver" and that they are "spending 20% of what we used to to spend for each quarterly earnings release." She went on to mention that a secondary benefit is not having to proofread the wire service's version which saves time and also allows for last minute edits. It seems that having control over one's own content is another added benefit of using an advisory release. Do you want to learn more about the control that you can get with an online newsroom?
In some of the vibrant discussion in the comments area of the IR Alert article, some people (albeit anonymous) mentioned that companies might receive negative feedback on using an advisory release because it may be difficult to click on a hyperlink from the release to the full earnings report. According to Steinway they have "had no negative feedback" since switching to the advisory release method.
I was curious as to the process of posting earnings and financial releases on the Steinway web site and Julie mentioned that their "web site was created so that it is easy for the IR department to upload the critical financial documents very quickly" and that their IR team handles the process, not IT. This type of control is becoming the norm across both PR and IR departments as the tools become easier to use and executives are understanding the importance of having their own web sites be the central source for financial information.
Other organizations including Google, Expedia, Nokia, Conversus, REIS, and Marathon Oil are all using advisory releases. They are saving money, increasing their awareness and building a platform to be able to interact directly with investors, customers, analysts, and the media without having to go through the wire. Do you want to learn how you can reduce wire costs and save money?
This trend is surely to continue and we will be sure to keep track on our Advisory Release Twitter account at http://www.twitter.com/advisoryrelease