UPDATE 2-Playboy loss widens, search continues for CEO

*Q1 net loss of 41 cts share

*Q1 rev of $61.6 million down 22 percent

*Shares fell 3 percent before recovering (Adds CEO comments)

By Paul Thomasch

NEW YORK, May 11, (Reuters) - Playboy Enterprises Inc (PLA.N: Quote, Profile, Research), publisher of one of the world's best known adult magazines, posted on Monday a wider first-quarter loss under the weight of a depressed advertising market and slow consumer spending.

The company, which has said it would be open to discussions about an outright sale, reported a loss of $13.7 million, or 41 cents per share. This compares with a loss of $4.2 million, or 13 cents per share, in the year-ago period.

Before restructuring and impairment charges, the company lost 15 cents a share for the quarter.

Blaming in part an economic slowdown that has curtailed advertising spending, the company said revenue declined to $61.6 million from $78.5 million a year before.

To make up for revenue shortfalls, the company has been sharply cutting costs, including a 25 percent reduction in staff numbers since last October.