Licensing Pushes Playboy's Improved 3rd Quarter Results

CHICAGO — Increased revenue from licensing led Playboy Enterprises Inc. to report $2.6 million net income for the third quarter ending Sept. 30, more than twice the $1.1 million income in the same period last year.

Revenues in the third quarter were essentially flat at $82.8 million compared to $82.3 million last year.

Operating income was up 11 percent, from $3.7 million in the third quarter 2006 to $4.2 million in third quarter 2007. Playboy reports that the gain reflects improved results in the entertainment and licensing businesses, although the gains were partially offset by higher corporate administration and promotional expense.

"The quarter demonstrated many of the trends we have seen across 2007," Playboy Chairman and CEO Christie Hefner said. "Particularly the strength of our licensing business and its ability to drive profits."

Citing the success of the Playboy Club in Las Vegas, the first European Playboy store in London and sales of existing product lines, Hefner predicted that licensing group income would be up 25 to 30 percent over 2006.

The Licensing Group's segment income increased 37 percent, to $6.3 million in the third quarter 2007 from the prior year's $4.6 million. This reflects a 35 percent revenue increase from $7.5 million in third quarter 2006 to $10.1 million in third quarter 2007.

Playboy's Entertainment Group third quarter 2007 segment income was $7.2 million, up 23 percent from $5.8 million last year. Revenues in the 2007 quarter were $49.6 million compared to $50.2 million in the same period last year. Online/mobile revenues, part of the Entertainment Group, were flat at $15.3 million as growth in e-commerce and advertising sales this year were offset by lower revenues from paysites and mobile platforms compared to last year.

Playboy's Publishing Group reported a segment loss in the 2007 third quarter of $1.4 million, compared to a loss of $0.8 million in last year, on a 6 percent decline in revenues to $23.1 million. Playboy magazine revenues were down in the quarter due to lower newsstand and subscription circulation despite a 4 percent increase in third quarter 2007 advertising revenues over last year.

"Publishing Group results in the fourth quarter are expected to be in line with the third quarter," Hefner said. "In the Entertainment Group, we believe that the domestic TV business has stabilized, which will contribute to the group reporting segment income in 2007 that is similar to last year."

For more business information, visit the Playboy corporate website.

Related:  

Copyright © 2025 Adnet Media. All Rights Reserved. XBIZ is a trademark of Adnet Media.
Reproduction in whole or in part in any form or medium without express written permission is prohibited.

More News

Adult Networking Platform SpicyGigs.com Launches

SpicyGigs, a new adult industry networking platform, has officially launched.

Pineapple Support to Host 'Cream Pie Challenge' Fundraiser

Pineapple Support is hosting its Cream Pie Challenge through August to raise funds for mental health services for industry performers.

Kyrgyzstan President Signs Measure Outlawing Internet Porn

President Sadyr Japarov of Kyrgyzstan on Tuesday signed into law legislation outlawing online adult content in the country.

NC Legislature Overrides Veto of Extreme Anti-Adult Industry Bill

The North Carolina state legislature on Tuesday voted to override Gov. Josh Stein’s veto of a bill imposing regulations that industry observers have warned could push adult websites and platforms to ban most creators and content.

Report: VPN Downloads Soar in UK Following Age Verification Deadline

Virtual private network apps, which can be used to circumvent geo-specific age verification requirements, are topping Apple App Store downloads in the U.K. in the wake of new Online Safety Act rules, the BBC is reporting.

Strike 3 Holdings Sues Meta for Pirating Vixen Media Group Content to Train AI

Vixen Media Group owner Strike 3 Holdings filed suit in federal court this week, accusing Facebook parent company Meta of copyright infringement and alleging that Meta has extensively pirated VMG content to train its artificial intelligence models.

Pineapple Support, Streamate to Host 'Navigating Grief and Loss' Support Group

Pineapple Support and Streamate are hosting a free online support group to help performers cope with grief and loss.

Friday is Final AV Compliance Deadline in UK

Friday, July 25 marks U.K. media regulator Ofcom’s deadline for user-to-user services such as tube, cam and fan sites to implement its requisite “highly effective age assurance” measures for preventing minors from viewing adult content.

AEBN Publishes Popular Searches for May, June

AEBN has released the top search terms for the months of May and June from its straight and gay theaters in all 50 states and the District of Columbia.

Ofcom Releases Transparency Reporting Guidelines

Ofcom, the U.K. media regulator, has made public its official guidance detailing how online service providers — including adult sites — will be required to publish annual transparency reports on their efforts to protect children from online harms.

Show More