Playboy Enterprises has revealed that $6.3 million in restructuring charges and provisons for reserves led to a net loss of $5.2 million for its third quarter ending September 30th.
Excluding those charges, the company reported net income of $1.1 million, which compared to net income of $2.6 million in the same period last year.
Third quarter revenues were $70.4 million, down from $82.8 million in the same period in 2007. This, in part, reflects the company's decisions to sell its television studio assets and outsource its e-commerce operations. Segment income was $3.6 million in the quarter, versus $4.2 million in the prior year.
Playboy's licensing group reported Q3 segment income of $6.7 million, a five per cent increase compared to last year, on a two per cent revenue gain to $10.4 million. Total consumer products revenues were up seven per cent year-over-year, led by a 12 per cent increase in royalties from apparel and accessories.
However, these gains were offset by a decline in profit for the entertainment group ($2.8 million from $7.2 million last year), while the publishing group was also down.
PEI chairman and CEO Christie Hefner said: "From a financial standpoint, our balance sheet is solid and we have more than enough cash to meet our needs. We are less advertising dependent than most media companies, and many of our products and services fall into the category of affordable luxuries. We have a diverse portfolio and the ability to generate meaningful future profits."