Playboy narrows loss as it records lower one-time expenses; revenue continues slide

Playboy narrows loss on lower expenses

NEW YORK — Hugh Hefner’s Playboy media empire managed to narrow its losses in the most recent quarter. But only because it booked fewer one-time expenses.

Revenue from the company’s flagship magazine and its TV operations continued to erode, a trend that has put Playboy’s future in question.

The company said it continued to cut staff during the quarter. It eliminated 18 jobs, bringing the total down to about 550.

Playboy Enterprises Inc. announced in July that Hefner was proposing to buy the portion of the company he doesn’t already own. FriendFinder Networks Inc., the corporate parent of rival Penthouse magazine, also made a bid to take the company private.

Playboy’s board is considering both offers. But, because Hefner holds about 70 percent of the company’s voting shares, he will make the final call.

Playboy said Hefner has made it clear he doesn’t want to sell.

The second-quarter results released Thursday illustrate Playboy’s struggle to turn a profit as the Web supplants print and TV as a source of adult content.

The company reported a net loss of $5.4 million, or 16 cents per share, for the three months that ended June 30. A year earlier, it lost $8.7 million, or 26 cents per share.

But last year’s quarter included $9.1 million in one-time restructuring costs, largely expenses related to closing its New York offices. The most recent quarter included only $1.6 million in such charges.

Revenue dropped 10 percent to $56 million.

Revenue fell at the U.S. version of Playboy magazine by 38 percent to $10.2 million, in part because it comes out less frequently. Counting international and special editions as well as online operations, revenue at the company’s print/digital segment fell 26 percent to $20.9 million.

TV revenue slipped 5 percent to $22.7 million.

The one upbeat note came from Playboy’s licensing division, which leases out the Playboy name and iconic bunny ears for consumer products. Licensing revenue climbed 23 percent to $12.4 million.

Playboy shares slipped 4 cents to $5.35 in afternoon trading.