Impairment Charges Lead to Wider Loss at Playboy

CHICAGO: For the third quarter, Playboy Enterprises’ net loss increased to $27.4 million from $1.1 million last year as a result of impairment and restructuring charges totaling $25.8 million.

Excluding impairment charges, the company’s net loss was up to $1.6 million from last year’s $600,000, on revenues that fell 7 percent to $52.1 million.

In the Entertainment division, revenues fell 20 percent to $19.5 million, with a segment income of $800,000, down from $2.3 million. U.S. TV revenues fell 21 percent to $9.8 million, as a result of a $3 million withheld payment by DIRECTV, plus modest declines in movie network and video-on-demand revenues. International revenues fell to $9 million from $10.7 million, due to increased competition and unfavorable foreign exchange rates.