Playboy announces $27.4m net loss
Net loss over 20 times higher than for the same quarter last year.
Hugh Hefner's troubled Playboy empire on Tuesday announced a net loss of $27.4m for the third quarter ended September 30, 2010, compared with a net loss of $1.1m in the year-ago period.
This included impairment and restructuring charges totalling $25.8m. Revenue declined 7 per cent to $52.1m from $56m.
Playboy reported segment income of $0.7m in the quarter compared to $2.7m last year, as solid improvements in the print/digital and licensing groups were more than offset by lower entertainment group profits and increased corporate expense, a statement issued by the company said.
Speaking on Playboy's partnerships with the AMI and IMG, Chief Executive Officer Scott Flanders said, "We continue to make progress towards our goal of transitioning Playboy to a brand management company. The success of our existing partnerships with AMI and IMG demonstrate the viability and promise of outsourcing agreements."
"Working with AMI, we have reduced Playboy magazine's cost structure, contributing to the improvement in the Print/Digital Group's third quarter profitability compared to last year. In Asia, IMG helped close the single largest product licensing deal we've ever done, which was a factor in the significant top- and bottom-line growth the licensing group reported," Flanders added.
With regard to the offer by Playboy's founder and controlling shareholder Hugh Hefner to acquire the outstanding shares for $5.50 a share, valuing the company at about $185mn, Flanders said the "board continues to evaluate Mr. Hefner's proposal."