Executives Weigh Frequency, Other Cuts At Playboy

ANDREW VANACORE

NEW YORK (AP) — Executives at Playboy's parent company are considering cutting the magazine's frequency, reducing circulation or raising prices in order to save the money-losing publication.

"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," Jerome Kern, interim chief executive for Playboy Enterprises Inc., told analysts on a conference call Monday.

His remarks came as the company reported a growing first-quarter loss, suffering from falling revenue and big one-time charges.

Playboy Enterprises recorded a loss of $13.7 million, or 41 cents per share, compared with a loss of $4.2 million, or 13 cents per share, in the same quarter a year ago.

Charges for restructuring and write-downs on the value of its assets totaled $8.7 million, or 26 cents per share.

Revenue fell 21.5 percent to $61.6 million as the global slump in advertising and retail markets hurt the company's publishing, entertainment and licensing businesses.