Hard times for Hef as Playboy Q3 revenue drops $14m

by Tristan O'Carroll, mediaweek.co.uk 06-Nov-09, 15:45

LONDON - Playboy Enterprises' revenue fell $14m in Q3, on the back of lower income from its international TV channels and magazines.

The company, which publishes Playboy magazine worldwide and creates TV programming for its own-branded TV channels, as well as mobile and radio platforms, said global revenue totalled $56m in Q3 against $70.4m in the same period of 2008.

Playboy magazine was founded by Hugh Hefner in 1953. He remains editor-in-chief and chief creative officer.

Revenue from its non-US TV channels declined $1.1m year on year to $10.7m in Q3. The company blamed increased competition and "the effects of the economy" on consumer spending for the decrease.

Within its publishing arm, which publishes 26 international editions of Playboy magazine worldwide, Q3 international magazine revenue declined 21% to $1.5m, due, the company said, to "the global recession's effect on consumer and advertiser spending". Its Q3 digital revenue totalled $9.6m, down $1.3m from the same period last year.

Playboy Enterprises' chief executive Scott Flanders said its core magazine "needs to operate more efficiently".

He added: "We already announced that we will lower the magazine's rate base effective with the January/February 2010 issue, and we are looking at other opportunities to improve profitability."

Meanwhile, its licensing group, which licenses the Playboy brand to various footwear, lingerie and jewellery products, posted a 16% decline in Q3 2009 revenue to $8.7m, down from $10.4m in 2008.

Again, the company blamed the economic slowdown, "particularly related to the sale of consumer products in Western Europe" for the fall.