Playboy posts loss, forecasts magazine ad decline
By Michele Gershberg
NEW YORK (Reuters) - Adult entertainment publisher Playboy Enterprises Inc posted a net loss on Wednesday that upset Wall Street expectations for a profit and forecast a 30 percent advertising decline at its flagship magazine this quarter.
Shares of the company fell nearly 10 percent after it reported lower U.S. television revenue and a deeper loss for its publishing group that particularly weighed on results, offsetting double-digit growth for its international TV and licensing businesses.
Playboy has been competing against an abundance of free erotic material on the Internet, and now faces a deteriorating U.S. print advertising market.
The company said its fourth-quarter net loss was $1.1 million, or 3 cents per share, compared with a net profit of $3.7 million, or 11 cents per share, a year earlier.
The latest results included a $1.9 million charge for asset sales related to Playboy's Andrita television studio and nearly $2.6 million in tax benefits. The year-ago quarter included a $1.8 million charge for a legal settlement.
Revenue slipped to $85.9 million from $86.2 million a year earlier, the company said.
Excluding the one-time items, Playboy posted a lost of 9 cents per share, compared with the average analyst forecast for a profit of 5 cents per share, according to Reuters Estimates. Revenue was forecast at $88.2 million.
Playboy Chief Executive Christie Hefner said the company would invest more in technology, marketing and content to drive growth in its online and mobile businesses. Continued...
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