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We also may make reference to non-GAAP measures. Additional information including reconciliation to the related GAAP measure is included in today's earnings release.On the call today, we have our CEO, Scott Flanders, our President, Alex Vaickus and our interim Chief Financial Officer, Bob Campbell. And Alex will lead our floor for us this morning. Alex Vaickus Thanks Martha. Good morning. The $4.5 million swing in first quarter segment results that took us from a $1.3 million loss last year to a $3.2 million profit this year clearly demonstrates the success of our cost cutting measures. Each one of our business groups reported improved results and corporate expense declined. These initiatives have been comprehensive in scope. Today, we operate our businesses with 573 employees, down from 651 a year ago and more than 800 two years ago. As we go forward, we will likely continue to reduce headcount, although probably at a slower pace as in the past given the restructurings already undertaken. We also reduced a number of offices and lowered marketing, consulting and other expense items large and small. These efforts played a critical role in the significant improvement in the first quarter results compared to last year. While continuing to look at opportunities to reduce our cost structure, we'll not shy away from needed investments. We're adding staff in social networking and new media ventures to up grow our online and mobile businesses and we'll bring on Board other resources as needed. As we've stated in the past, we believe in the potential of Playboy TV and will make additional investments in the creations of original TV content. Although, cash programming was down in the first quarter compared to the prior year, we expect programming investments to increase by about 10% in 2010 compared to last year. Repositioning Playboy TV remains a priority and we're working at programming and marketing initiatives that we expect will drive revenues in 2011 and beyond. We're encouraged by the early results we've seen in our efforts.
Improved domestic TV results driven by Playboy TV were a major factor in the 21% increase in the entertainment group's first quarter segment income to $3.6 million.Although, domestic TV revenues in total were flat at $13.4 million in the first quarter compared to last year, growth in Playboy TV offset weaknesses in the movie networks. Playboy monthly subscribers are still on the rise and we saw a 10% increase in monthly revenues versus last year's first quarter and a 5% gain compared to the fourth quarter. Adult movie transactions remain challenged, as competition from other suppliers and from other media platforms eat into our buy rates, while we're working with our distributors to keep this pace competitive and to market our VOD product as effectively as possible, we recognize that adult movies will remain a smaller piece of our overall TV business. Entertainment results in this year's first quarter also benefited from a decline in programming amortization expense, which we do not expect to continue through the reminder of the year. Overall, we anticipate 2010 amortization expense for TV content to run roughly $29 million, which is inline with last year. Turning to Print/Digital, we are very pleased with the magazines performance in the first quarter. A result of both cost cuts and our decision to reduce the rate base. Although, Playboy magazine recorded a first quarter loss, it was a significant improvement compared to last year and was responsible for a narrowing of the Print/Digital group's first quarter 2010 segment loss from a $3.6 million loss last year to $1.1 million this year. During the quarter, we substantially completed the transition of our non-editorial publishing functions to AMI. We've not yet seen many of the benefits of that transaction, but clearly progress is under way. AMI rolled out its young men's network with trade advertising support and you will see new advertisers, particularly in the gaming, entertainment and toiletries category in the coming quarters. Read the rest of this transcript for free on seekingalpha.com