Porn News

Just Like AVN: Playboy May Cut Back on Magazine as Losses Grow

Playboy Enterprises Inc. said Monday it is considering reducing the circulation of its namesake magazine, cutting its frequency and raising prices as it copes with the erosion of its print audience and advertising dragging down the adult-entertainment company.

The possible moves come as Playboy posted a net loss of $13.7 million, or 41 cents per share, for the first quarter, compared to a net loss of $4.2 million, or 13 cents per share, a year earlier. The latest results included $8.7 million in impairment and restructuring charges.

Jerome Kern, Playboy’s interim chairman and chief executive officer since Christie Hefner stepped down at the end of last year, said in a conference call with analysts that while the magazine is important to the company’s image and brand, “it is clear that this company cannot continue to sustain significant losses in a business that now comprises less than one quarter of the company’s revenue base.”

Playboy is exploring what Mr. Kern described as “radical” changes to the magazine, including its 2.6 million guaranteed circulation. In addition, Playboy this summer will combine its July and August issues to save money on printing and distribution, a move it says could be a precursor to a permanent curtailing of frequency.

The recession has intensified problems at the Chicago company, which in recent years has seen its audience decline due to the proliferation of options for adult content. In response, the company has implemented extensive cost-cutting efforts, including closing its New York office and reducing headcount by 25% since October, saving about $18 million in personnel-related costs. Those efforts nearly offset declines in first-quarter revenue, which fell 21.5% to $61.6 million for the period.

The company reported sharp declines in revenue from entertainment and licensing units that traditionally have helped offset the diminishing print brand. The entertainment division, which includes Playboy TV, posted a nearly 20% decline in revenue to $26.2 million on lower pay-per-view sales. Licensing revenue, from slapping the bunny-silhouette logo on everything from energy drinks to resorts, fell 11.4% to $9.3 million in the quarter.

The company’s biggest concern, however, is at the magazine, where revenue fell 16% to $13.5 million in the first quarter on softer circulation and advertising. The company said it expects to report a 39% decline in magazine ad revenues in the second quarter compared to last year.

196 Views

Related Posts

Lily Starfire Stars in Latest Naughty America Scene

Nov 8, 2024 7:11 PM PSTLOS ANGELES — Lily Starfire stars alongside Nick Strokes in the latest scene from Naughty America, an installment of the studio's "After School" series. "Wearing a red bikini and sunglasses, Lily is chilling poolside, waiting…

Taylor Nicole Drops New Clip

Nov 8, 2024 7:08 PM PSTLAS VEGAS — Taylor Nicole has released a new clip, "The Taylor Nicole Slut Walk." In the clip, Nicole embarks on a slut walk, which, according to a rep, is a "sexual escapade that includes…

Molly Little & Stella Luxx Named 2025 AVN Awards Trophy Girls

AVN Media Network is pleased to announce that Molly Little and Stella Luxx have been named the official Trophy Girls for the 2025 AVN Awards Show presented by MyFreeCams.

Dan Damage Renews Contract With Vixen Media Group

Vixen Media Group on Friday announced that it has renewed its exclusive contract with adult performer Dan Damage.

Evil Angel Rolls Out ‘Transgressive 24’

Evil Angel on Friday announced the releaser of director JD's Transgressive 24.

Leave a Reply

Your email address will not be published.