Quick Hits: Playboy's Profits Fall Down Rabbit Hole
Brief scrutiny of today's headlines
Reuters reports a weakening of revenues for publishers and television companies as more people look to free entertainment online.
Playboy reported a first quarter loss of $3.1 million compared to a profit of $1.5 million one year ago. Company revenue followed this downward slope, falling 8% to $78.5 million and missing estimates by $6.9 million.
The company's domestic television take fell 16% despite growth in monthly subscription revenue at Playboy TV. Moreover, profit at flagship Playboy magazine declined 14% as circulation and ad sales for the publication plummeted.
Hefner said he knew Playboy's revenue from licensing, which rose 5% with a 10% boost from international consumer products, would stay strong throughout the year. On the other hand, he didn't expect the company's overall weak showing.
But the ever-industrious perma-bachelor thinks that Miley Cyrus posing for Playboy will reverse the embattled company's fortune. If not, maybe its new mobile phone will do the trick.
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