Playboy posts loss, but says magazine ads will rise

By Reuters
Posted Nov. 9, 2010 at 9:59 a.m.

Playboy Enterprises Inc. reported a wider-than-expected quarterly loss as revenue from its entertainment, and print and digital businesses continued to decline, but said it expects Playboy magazine advertising pages to rise about 7 percent in the current quarter.

The adult entertainment company will open Playboy Clubs in Macao and Cancun later this month and will reopen a club in London, after more than two decades, in the second quarter of 2011.

Third-quarter net loss widened to $27.4 million, or 81 cents a share, including $25.8 million in impairment and restructuring charges. This compares with a net loss of $1.1 million, or 3 cents a share, a year ago.

The company, which is being wooed by both founder Hugh Hefner and rival Penthouse magazine-owner FriendFinder Networks, saw revenue fall 7 percent to $52.1 million.

Excluding items, the company reported a loss of 5 cents a share. [ID:nASA01115]

Two analysts on average were expecting a loss of 71 cents a share and revenue of $51.8 million, according to Thomson Reuters I/B/E/S.

Separately, Playboy said it signed a licensing agreement with IMG Licensing Worldwide as its exclusive agent in Europe. The agreement covers most Playboy products and expands IMG’s geographic responsibilities for licensing the Playboy brand.

Shares of Chicago, Illinois-based Playboy closed at $4.91 on Monday on the New York Stock Exchange.

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