Playboy Announces $20 Million Writedown
NEW YORK (TheStreet) -- Playboy Enterprises (PLA) announced that it expects to include a non-cash write-down of more than $20 million in its upcoming third quarter results, attributed to shortcomings in its television programming inventory.
The company said that its financial report will also be impacted by its current legal battle with DirecTV (DTV).
DirecTV has allegedly failed to pay Playboy for TV programming it receives from the company, which has left Playboy with about $1 million in bad debt expenses and approximately $3 million in domestic TV contra revenues.
The U.S. satellite TV company is withholding payments and suing Playboy in California Superior Court, claiming that the adult entertainment company was in breach of its contract. Playboy continues to defend the lawsuit.The company is scheduled to release its third quarter earnings report on November 9. -- Written by Theresa McCabe in Boston.
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