This story was written by David Kaplan.
Although Playboy Enterprises (NYSE: PLA) had warned that its Q2 earnings would look worse than previously thought due to higher restructuring charges, the company still managed to miss analysts expectations. Playboy’s net loss widened to $8.7 million ($0.26 per share) from $3.2 million ($0.10 per share) last year. Analysts were anticipating a net loss of $0.23 per share (via Thomson Reuters). Revenues fell 15.3 percent to $62.2 million.
In his first presentation as Playboy’s CEO, Scott Flanders said that more cost-cutting was needed and he was prepared to do more outsourcing and would look to unload unprofitable businesses.
|2Q 2009||2Q 2008||Analysts Estimates For 2009|
Earnings release | Webcast (11:00 AM EDT)
—Digital’s down: So far, the long-awaited digital revamp that was unveiled last January hasn’t produced any benefits yet. The company blamed lower paysite, e-commerce and ad dollars for the digital segment’s 23.3 percent decline to $8.9 million. Despite all its troubles, the combined Print/Digital unit’s income rose to $2.3 million from $0.1 million from last year. Still, revenues for the combined group were $28.3 million in the quarter, down 12 percent year-over-year.
—The Entertainment Group at least could point to a small turnaround. The group posted $2 million income after segment loss of $200,000 in the same period last year. The improvement was due mostly to cost-savings, however, as Q2 revenues slipped to $23.8 million from $29.6 million.
—Licensing Group revenues and segment income were $10.1 million and $4.8 million, down 14 percent and 22 percent, respectively.
By David Kaplan