Playboy has faced increased competition from New Frontier Media for cable and satellite business, despite the rebranding last year of its line of Spice channels. The company relaunched those channels as Club Jenna, Fresh!, Shorteez and Spice Xcess.
“With that major profit contributor back on track, we believe growth in our international TV and digital businesses plus continued strong performance in our licensing business will continue to drive operating and net income growth,” Playboy Chairman and Chief Executive Officer Christie Hefner said.
Playboy's second-quarter net profit was $1.9 million, or 6 cents a share, compared with a loss of $3.3 million, or 10 cents a share, a year ago.
Operating income was $3.8 million compared to a loss of $1.2 million in the prior year period when the company recorded a $1.9 million restructuring charge.
Results were helped by a 4 percent increase in U.S. TV revenue, one of its largest businesses. International TV revenue rose 16 percent and licensing sales grew 36 percent.
Its online and mobile division also saw a gain of 10 percent, earning $14.6 million in revenue, from the prior year period. That division includes Adult.com, GoFuckYourself.com and ClubJenna.com.
But those advances overshadowed a 3 percent decline in advertising and an 8 percent drop in circulation at Playboy magazine.
Hefner said Playboy’s licensing business will grow by 20 percent to 25 percent in revenue and profit in 2007 from a year ago. Licensing accounts for 13 percent of the company's overall revenue. The publishing arm accounts for 26 percent.
