Playboy up thanks to strong licensing

Profits at adult entertainment media company boosted by merchandise and licensing.
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Playboy Enterprises has reported net income for its third quarter ending September 30th 2007 of $2.6 million - with its main boost coming from its entertainment and licensing divisions.

The adult property also saw operating income improve to $4.2 million for the period, up 11 per cent from $3.7 million in the 2006 time frame.

And, as reported last week on (click here for original story), while the publishing group reported a loss of $1.4m, entertainment income was up 23 per cent to $7.2 million and the licensing division enjoyed a rise of 37 per cent to $6.3 million for the period.

Increased sales of consumer products and royalties from a licensing deal with the Palms Casino Resort were primarily responsible for the year-over-year revenue and profit growth.

"The quarter demonstrated many of the trends we have seen across 2007, particularly the strength of our licensing business and its ability to drive profits," said Playboy chairman and CEO Christie Hefner.

"We believe that these dynamics will continue for the remainder of the year. 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 per cent 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."


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Already worth $800m in global retail sales, we find out how the Playboy brand is eyeing up further growth.

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