Playboy reports wider Q1 loss
$13.7 mil loss, despite cost cuttingPlayboy Enterprises reported a wider first-quarter loss Monday due to impairment and restructuring charges and sluggish momentum across its divisions.
The adult entertainment company lost $13.7 million, compared to a year-ago loss of $4.2 million despite recent cost cutting. Revenue fell 21.5% to $61.6 million.
The company cited asset sales and "the effects of the global economic slowdown on advertising and consumer spending" as key drivers of the revenue decline. U.S. TV revenue fell to $13.3 million from $16.5 million.
"We are beginning to see the results of the extensive restructuring and cost-reduction work that we began implementing in last year's fourth quarter," said Playboy interim chairman and CEO Jerome Kern.
"This performance is still not acceptable, however, and we expect to continue making changes that will lead to further improvements in the magazine's financial results."
Playboy has previously said it is considering its strategic options, including an outright sale.