Playboy Third-Quarter Financials Decline
No update on possible sale of adult entertainment company
NEW YORK - Playboy Enterprises on Tuesday reported a bigger-than-expected third-quarter loss as revenue continued to fall and the company took charges.
The adult entertainment firm posted a loss of $27.4 million, including $25.8 million in impairment and restructuring charges, compaired with a year-ago loss of $1.1 million. The company posted a revenue decline of 7% to $52.1 million.
Founder Hugh Hefner and rival and Penthouse magazine owner FriendFinder Networks have both offered to acquire Playboy.
On Playboy's earnings conference call Tuesday, CEO Scott Flanders said he had no news regarding Hefner’s offer, which the company's board is reviewing.
“We haven’t necessarily agreed on everything,” but differences have been more about how things get accomplished than what gets accompished, he said when about his relationship with Hefner.
Playboy's entertainment unit reported a third-quarter profit of $800,000, down from $2.3 million in the year-ago quarter as revenue declined 20% to $19.5 million. The company previously said that satellite TV giant DirecTV withheld estimated payments of $3 million. DirecTV is suing Playboy, arguing that it breached terms of a program carriage agreement. Also dragging down unit results was lower movie network and video-on-demand revenue