Source: Reuters
By:
(NEW YORK, NY) — Playboy Enterprises Inc. on Wednesday reported narrower second quarter losses on higher revenue as its online and television businesses attracted more viewers.
The adult entertainment company, whose namesake magazine celebrates its 50th anniversary this year, reported a loss of $900,000, or 4 cents per share, for the quarter ended June 30 compared with a loss of $3.1 million, or 12 cents per share a year ago.
Revenue in the period increased 8 percent to $76 million from $70.6 million the previous year.
“Strong operating results for the first half of the year and the encouraging trends we are seeing across our businesses lead us to believe that 2003 operating income will be up more than 150 percent over last year to approximately $22 million,” said Chairman and Chief Executive Christie Hefner.
Domestic television networks and increased international television results helped offset lower home video and DVD sales at the entertainment group, which posted revenues of $33.8 million, up 10 percent from a year ago.
Publishing revenues increased 7 percent to $28.8 million, as the flagship Playboy magazine increased its newsstand sales, particularly with the May issue. However, second-quarter advertising revenue fell 4 percent.
The company said it sees higher ad revenues for the second half and full year 2003 versus last year but third quarter ad revenues are expected to be lower than the previous year.
Online revenues were boosted by a 58 percent jump in subscription sales as well a price hike for the company’s Playboy Cyber Club, which offers exclusive content on the Web. The group’s total revenue was $8.3 million, up 8 percent.
