Overall, revenue remained nearly level for the first three quarters of the year, at $82.8 million, compared to $82.3 million during the same time period in 2006.
Playboy CEO Christie Hefner said that the figures indicate trends the company had seen throughout 2007, and that increases in revenue were due to Playboy’s licensing business and its ability to drive profits.
"We believe that these same dynamics will continue for the remainder of the year,” Hefner said. “We are again raising guidance for the licensing group, as we now anticipate that 2007 segment income — excluding original art sales — will be up 25 to 30 percent compared to last year.
“Given the continued success of the Playboy venues at the Palms Casino Resort in Las Vegas, the reception to our first store in Europe, which opened in London in September, and sales of existing product lines, we remain enthusiastic about the ongoing potential of this business,” Hefner said.
Playboy also noted a loss in its publishing group, as well as revenue from domestic TV.
“Publishing group results in the fourth quarter are expected to be in line with the third quarter. 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," Hefner said.
Playboy’s licensing group showed the biggest gains, increasing 37 percent compared to a 35 percent rise from the same time last year, from $6.3 million from $4.6 million for the third quarter of 2007. The increase in revenue was attributable to a licensing agreement between the Palms Casino Resort, as well as increased sales of consumer goods.
In the entertainment group, international TV revenue increased 15 percent to $14.3 million compared to last year. Domestic television revenues declined to $17.6 million in the 2007 third quarter from $20.5 million last year, caused by a downward adjustment of previously reported revenues, which was based on revised information from a large cable operator.
However, revenue for online and wireless platforms stayed relatively flat, as increases in e-commerce and advertising were offset by decreases in revenue from paysites and mobile platforms, with an overall total of $15.3 million.
The publishing group showed a loss of $1.4 million compared to $800,000 for the same period last year. The loss was attributable to a decrease in subscriptions and newsstand sales, and despite a 4 percent increasing in advertising revenues. A reduction in paper and printing cost somewhat offset losses in this group over the first three quarters of the year.
The company said that it expects fourth quarter advertising revenue to be down 3 percent, compared to last year.
