Playboy Enterprises Posts Q2 Profit

CHICAGO, August 7: Playboy Enterprises has emerged from last
year’s second-quarter loss of $3.3 million to deliver a profit of $1.9 million
on revenues of $85.7 million, up from $80.5 million in the year-ago period.

“This quarter's results underscore our confidence that our
domestic TV business has now stabilized as we continue to execute on our SVOD
and VOD strategies,” said Christie Hefner, Playboy’s chairman and CEO. “With
that major profit contributor back on track, we believe growth in our
international TV and digital businesses plus continued strong performance in
our licensing business will continue to drive operating and net income growth.”

In the entertainment group, revenues rose 9 percent to $51.8
million, while segment income jumped 50 percent to $7.3 million. U.S. TV
revenues rose 4 percent to $21.6 million, driven by higher movie
video-on-demand revenues. International TV revenues increased 16 percent to
$13.7 million, primarily due to improved performance from the U.K. and other
European networks. There was also an 8 percent increase in second quarter 2007
online/mobile revenues.

The publishing group reported a higher segment loss of $2.3
million, while revenues fell 5 percent to $22.7 million. The licensing group’s
segment income rose 36 percent to $5.5 million, with revenues up 22 percent to
$11.2 million.