Meredith Corp.’s revenue from licensing dropped in the 2nd quarter ended Dec. 31 due partly to changes in royalty recognition under an earlier 3-year renewal of its agreement with Walmart, CFO Joseph Ceryaneo told analysts in releasing earnings on Wednesday. Meredith’s licensing activities are highlighted by its direct Walmart relationship and the long-running Better Homes and Gardens realty license with Realogy Holdings.

The most recent Walmart renewal was “modified a little bit in how the royalty would work” so that Meredith is recognizing less revenue in its fiscal first half (which matches the second half of the calendar year) than it will in the second, Ceryaneo said. As a result, Meredith expects “licensing to turn around” and increase in the second half. The Walmart program, which covers about 3,000 products, was extended to include “major opportunities” with Walmart.com and in international markets, company executives have said. Meredith has expanded licensing for Better Homes and Gardens into China and Mexico (Inside Licensing Feb 2 p3)

Overall, Meredith’s Q2 net income grew to $71.8 million from $32.5 million as revenue rose to $442.6 million from $406.4 million.