Playboy Losses Widen on Higher Costs
For the quarter ended September 30, the company saw a loss of $27.4 million, or 81 cents per diluted share, compared with a loss of $1.1 million, or 3 cents per diluted share, in the same period a year ago. Analysts had expected a loss of 71 cents according to Briefing.com..
Total revenue fell 7% to $52.1 million from $56 million during the quarter as a decrease in entertainment revenue and increased expenses more than offset gains in print, digital and licensing groups revenues.
Expenses related to impairment and restructuring skyrocketed to $25.8 million from $500,000 in the same period a year ago. Programming costs were $22.3 million while distribution agreement expenses came in at $3.1 million.Corporate expenses rose 38.2% to $7.6 million from $5.5 million due to higher trademark defense costs and fees related to Hugh Hefner's proposal to take the company private. Entertainment group revenue dropped 20.1% to $19.5 million from $24.4 million on lower U.S. television revenue. Domestic television revenue fell 21% to $9.8 million from $12.5 million, primarily due to DirecTV (DTV) withholding payments of about $3 million for Playboy programming during the quarter. International television revenue was down 15.9% to $9 million from $10.7 million due to increased competition and an unfavorable foreign exchange rate. Print and digital revenue was down 5.2% to $21.7 million from $22.9 million, while the 6.4% increase in Playboy magazine revenue to $10 million from $9.4 million was offset by the 11.5% drop in digital revenue to $8.5 million from $9.6 million.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV