Executives Weigh Frequency, Other Cuts At Playboy

U.S. revenue for the flagship magazine fell 16 percent to $13.5 million, or 22 percent of total revenue. And the company said it expects to report a 39 percent decline in magazine advertising revenue during the quarter ending in June.

The print/digital unit, which includes the U.S. magazine, international and special editions and Web sites, saw a 26 percent drop in revenue to $26.1 million. That unit posted a net loss of $3.6 million in the quarter, wider than the $2.8 million loss in the year-ago period.

The company said the monthly Playboy magazine would combine its July and August issues to reduce printing and distribution costs. By billing it as a "double issue," the company does not have to reduce the annual subscription price.

Beyond that, Kern said the company was exploring various scenarios to ensure profitability or "at least break even," but he could not say "whether or when we can get there."

In a statement, Kern also highlighted the parent company's cost-cutting moves, noting a 25 percent drop in jobs since October is yielding annual savings of $18 million.

Most recently, the Chicago-based company said in March that it was closing its New York office by May 1, laying off most of the 100 employees who worked there.