Porn News

Playboy posts loss after shedding TV assets; Even Licensing Isn’t Saving It

NEW YORK – Adult entertainment company Playboy Enterprises Inc forecast a sharp decline in advertising revenue in the current quarter after posting a third-quarter loss, and its shares fell 27 percent.

Third-quarter revenue fell 15 percent to $70.4 million, partly because of Playboy’s decision to sell its television studio assets and to outsource its e-commerce operations. Analysts on average were expecting revenue of $75.5 million, according to Reuters Estimates.

“The market’s focusing on topline fundamentals, which were very poor in the quarter, and much worse than even the most pessimistic expectations,” said David Miller, an analyst at Caris & Co in Los Angeles.

Playboy publishes one of the world’s most well known adult magazines. One of its more reliable businesses lately, however, has been its licensing unit, which is responsible for placing the company’s iconic bunny ears logo on everything from T-shirts to diamond pendants.

The division’s growth has slowed sharply: it posted a 5 percent rise in segment income, while consumer products revenue rose 7 percent compared with last year.

“That’s a cause for even greater concern,” Miller said. “Licensing is usually the one unit that can deliver consistent returns, so the stock’s getting annihilated here — and appropriately.”

Playboy reported a net loss of $5.2 million, or 15 cents per share, for the quarter ended September30, after it took $6.3 million in previously announced restructuring charges and provisions for reserves.

Playboy said in October that it would close its DVD business, one of a number of steps it is taking to save $12 million a year. It has said the move would cost 80 jobs.

Excluding special charges, it reported a third-quarter profit of 4 cents per share, better than the average analyst forecast for a loss of 1 cent, according to Reuters Estimates. In the year-ago period, Playboy posted a profit of $2.6 million, or 8 cents per share.

“We were pleased to return the company to profitability, excluding charges and reserves, but we can do better,” Chief Executive Christie Hefner said in a statement, adding that Playboy’s focus on its licensing business and streamlining operations would produce profitable growth next year.

Playboy lost $1.3 million in its publishing division as revenue fell 6 percent to $21.8 million. It also expects a 17 percent decline in ad revenue in the fourth quarter compared to last year.

Like many magazine and newspaper publishers, Playboy has a brand name that is more widely known than read. Circulation has fallen as more people looking for adult entertainment and racier pictures of nude women turn to free sites online.

Shares fell to $1.75 in morning trading from their Wednesday close of $2.40 on the New York Stock Exchange.

182 Views

Related Posts

Popular Pakistani Actor and Director Yasir Hussain Proposes Legalizing Porn

ISLAMABAD — Prominent Pakistani actor, director and TV personality Yasir Hussain sparked debate in the majority-Muslim country after suggesting that pornography should be legalized there and society should own up to so many Pakistanis being already habitual consumers. Speaking candidly…

Conservative Taxpayers Group Criticizes KOSA’s Overreach

WASHINGTON — Conservative newspaper The Washington Times published Tuesday an opinion piece by the executive director of the Taxpayers Protection Alliance criticizing KOSA on constitutional grounds.KOSA, wrote TPA’s Patrick Hedger, “has been circulating for years, and the sponsors of the legislation…

Remy LaCroix Returns in LucidFlix’s ‘Ultimacy III – The Author’

2013 AVN Best New Starlet Remy LaCroix makes her first comeback appearance in "The Author," the latest scene of actor/director Seth Gamble's VPOV (virtual point-of-view) production "Ultimacy III."

NightMoves Announces Nominees, Details for 32nd Annual Awards

The 32nd Annual NightMoves Awards Show Weekend is scheduled for October 10-13, 2024 in Tampa Bay, Florida, and voting is now open for the array of nominated talent, crew, nightclubs and more.

More Conservative Organizations Distance Themselves From Anti-Porn Project 2025

WASHINGTON — A growing list of conservative groups which had formerly endorsed Project 2025 — which calls for the total criminalization of adult content production and distribution — have reportedly distanced themselves from the self-described "presidential transition" blueprint, following Donald…

Leave a Reply

Your email address will not be published.