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.
