Licensing stars for Playboy

Segment income up 35 per cent, but group as a whole records a loss for second quarter.
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The CEO of Playboy Enterprises has said that the strong performance of its licensing business in the second quarter shows that its strategy to become a brand management company is working.

The 35 per cent increase in segment income for the licensing division to $6.4 million was a high point in Playboy's quarter two figures, however. Overall, the firm made a net loss for the period ending June 30th of $5.4 million.

Segment income was $0.4 million, down from $3.6 million in the prior year, on a ten per cent decline in revenues to $56.0 million from $62.2 million last year.

Indeed, the increase from licensing was more than offset by a loss in the print/digital group, which was due in part to litigation expense related to one of the company's international editions.

CEO Scott Flanders said: "The licensing group's strong performance in the quarter demonstrates the viability of our strategy to transform Playboy from a business operator into a brand management company. Through the years, we have successfully built a brand with unrivalled global appeal, and our future success hinges on finding partners who can best exploit that popularity."


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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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