Today's PEI financial statement
Wed, 07 May 2003 10:11:31 -0500
There are several items of interest in today's financial statement. I
am particularly pleased to see Christie Hefner's statement that
advertisers are being introduced to PLAYBOY's editorial updates; I
hope this will result in an improved advertising situation for them,
the ads in PLAYBOY have been both few and of very limited scope
(little besides alochol, tobacco products, and small independent
companies; where is Tommy Hilfiger? Gap? Skechers? automobiles? etc.).
As we know, cost cutting measures have been very aggressive; I would
even call them brutal.
Playboy Reports Substantially Improved Results
CHICAGO, May 7 /PRNewswire-FirstCall/ -- Playboy Enterprises,
Inc. (PEI) (NYSE: PLA, PLAA) today announced net income for the first
quarter ended March 31, 2003, of $0.6 million, or $0.02 per basic and
diluted share, compared to a net loss in the prior year quarter of
$9.4 million, or $0.38 per basic and diluted share... The results
reflected the Online Group's swing from an operating loss to an
operating profit, improved Licensing and Publishing results, and
continued solid Entertainment Group performance...
Christie Hefner, chairman and chief executive officer, said:
"We are also excited about the editorial evolution now evident in
Playboy magazine and are in the process of introducing those changes
to the advertising community. The Playboy brand remains a powerful
marketing vehicle, as is evidenced by the continued consumer
enthusiasm for our licensed products as well as our television
networks both here and overseas.
Lower manufacturing and editorial costs were primarily responsible for
the improvement in Publishing Group results to an operating profit of
$0.5 million in the 2003 first quarter compared to last year's loss of
$0.4 million. First quarter 2003 revenues were essentially flat at
$26.6 million with Playboy magazine posting slightly lower advertising
revenues. The company said that it also expects ad revenues to be down
slightly in the second quarter, but up for the full year.
The Online Group reported an operating profit of $0.3 million in the
2003 first quarter versus a $3.6 million operating loss in the prior
year. The swing was due both to a 45% improvement in first quarter
revenues to $9.2 million as well as expense reductions implemented
last year. The Group's largest revenue stream, subscriptions, more
than doubled in the quarter to $4.1 million as the company benefited
from a price increase for Playboy Cyber Club in the fourth quarter of
2002, as well as the introduction of new clubs, which contributed to a
35% growth in total subscribers. E-commerce revenues grew 33% in the
2003 first quarter compared to last year's quarter primarily due to
the timing of catalog mailings, while revenues from other sources were
Corporate Administration and Other
First quarter Corporate Administration and Promotion expenses declined
19% to $2.9 million in 2003 from $3.6 million last year in part
reflecting the company's continued focus on cost control measures...