Loss Widens at Playboy

CHICAGO: Playboy Enterprises saw its fourth-quarter revenues fall by 18.7 percent to $69.8 million, with a net loss of $145.7 million, up from the $1.1 million loss recorded in the year-ago period, as a result of $157.2 million in impairment, restructuring and other charges.

Total entertainment revenues fell from $50.7 million to $39.9 million. This included flat domestic TV revenues of $16.7 million and reduced international TV revenues of $9.9 million—down from $14.1 million as a result of foreign exchange rates and increased competition, largely in the U.K. Online and mobile revenues were also down, to $10.7 million. Segment income for the group, however, doubled to $5 million compared to the prior-year period, due in part to improved profitability in the U.S. TV business. 

Jerome Kern, the interim chairman and CEO of Playboy, stated in announcing the results: "Playboy continues to enjoy a unique, globally popular brand. However, our financial performance is not reflective of its potential. Over the past several months, the company has accelerated the pace of expense reductions designed to bring our cost structure in line with current market realities and the positioning of our businesses going forward. The results of our efforts to date should be meaningful, but in the face of current economic conditions, it is clear that our streamlining initiatives need to continue. At the same time, we are focused on profitable revenue growth. We believe that our licensing business will continue to be a long-term growth engine for the company, in spite of the pressure on consumer spending that affected fourth quarter results. We also have signed two entertainment venue deals, one of which could open even before Playboy Mansion Macau is completed next year. The difficult economic environment makes growing media revenues even more challenging, but we are committed to implementing global business models that effectively monetize our content. With a disciplined operating approach and the worldwide appeal of the brand, we believe we can exit the downturn in a position of renewed strength and return this company to profitability."