Drop in overall income, but licensing division still performing well.Playboy Enterprises has reported a net loss of $2.1 million for its second quarter ending June 30th 2008.
This compares to net income in the year earlier period of $1.9 million.
Second quarter 2008 revenues declined by 14 per cent to $73.4 million from $85.7 million, reflecting both continued pressure on the media businesses, as well as the recent sale of assets and outsourcing of operations that were completed earlier this year.
Lower media results more than offset improved licensing profits, leading to a $0.3 million segment loss for Q2 versus $3.9 million in segment income in the same period last year.
"The licensing group continues to report solid top and bottom-line growth despite a weak retail environment in Europe and the US," said Playboy chairman and chief executive officer Christie Hefner. "We are very pleased with this performance and continue to believe that growth in South East Asia and other international markets, combined with the launch of new products and geographic expansion will lead to year-over-year high single digit profit growth in the licensing group in 2008, excluding the sale of art in 2007."
The licensing group reported a ten per cent increase in 2008 Q2 segment income to $6.0 million from $5.5 million in the prior year period.
Revenues rose four per cent to $11.6 million from $11.2 million in the same time periods. Higher sales of consumer products in South East Asia, the US and Latin America contributed to the improved top and bottom-line results.