February 14, 2008

Playboy posts loss

NEW YORK (Reuters) - Adult entertainment publisher Playboy Enterprises Inc (PLA.N) posted a net loss on Wednesday that upset Wall Street expectations for a profit and forecast a 30 percent advertising decline at its flagship magazine this quarter.

Lower U.S. television revenue and a deeper loss for its publishing group particularly weighed on results, offsetting double-digit growth for its international TV and licensing businesses.

Playboy said its fourth-quarter net loss was $1.1 million, or 3 cents per share, compared with a net profit of $3.7 million, or 11 cent per share, a year earlier.

The latest results included a $1.9 million charge for asset sales related to Playboy's Andrita television studio and nearly $2.6 million in tax benefits. The year-ago quarter included a $1.8 million charge for a legal settlement.

Revenue slipped to $85.9 million from $86.2 million a year earlier, the company said.

Excluding the one-time items, Playboy posted a 9 cent loss per share, compared with the average analyst forecast for a profit of 5 cents per share, according to Reuters Estimates. Revenue was forecast at $88.2 million.

Playboy Chief Executive Christie Hefner said the company would invest more in technology, marketing and content to drive growth in its online and mobile businesses.

Playboy is also working out a deal to outsource its Web commerce and catalog operations to an experienced merchandising company.

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