Revenue for the fourth quarter of 2007 was $85.9 million, which Playboy called “basically flat” compared to the prior-year period. The company also reported an operating loss of $1.9 million for the quarter.
On the bright side, segment income from the licensing group rose 17 percent to $6.9 million with revenue at $10.5 million, up 18 percent in the same time period the previous year.
The company expects its licensing division to continue its steady growth and intends to expand its distribution and product lines via Playboy-branded stores.
“We continue to be very pleased with the growth and performance of our licensing group,” Playboy CEO Christie Hefner said. “The 40 percent growth in 2007 full-year licensing income reflected solid double-digit profit gains in our core consumer products businesses as well as the first full year of operations of the Playboy venues at the Palms Casino Resort.
“The media businesses’ results were mixed. We posted another year of double-digit revenue and profit growth for the international TV business and increased total advertising sales for Playboy in print and online. But we were disappointed with fourth quarter domestic TV and publishing results.”
In order to offset its losses in the media business, Hefner announced the sale of its assets of Playboy TV’s Andrita studio in Los Angeles where “Night Calls” was shot along with other programming for the network. Hefner said the company still plans to use the production facilities after the sale, which she expects to be finalized in March.
On the entertainment and television side, Playboy’s income was $2.5 million, down from $4.7 million in the prior-year period and revenue declined 3 percent. Domestic TV revenue was down 10 percent.
The company’s publishing group posted a $1.5 million loss along with flattened newsstand revenue, lower subscription revenues and a decline in total circulation. Hefner said that she expects Playboy’s magazine advertising revenue to decline 30 percent in the first quarter of 2008.
