(RTTNews) - Wednesday, Playboy Enterprises, Inc.
(PLA), a multimedia entertainment company, announced fourth quarter financial results, posting a net loss, reversing a net income in the year-ago quarter.
The company's fourth quarter net loss was $1.1 million or $0.03 per share, compared to a net income of $3.7 million or $0.11 per share in the year ago quarter. On an average, four analysts polled by First Call/Thomson Financial estimated the company to earn $0.05 per share for the quarter.
Total revenues for the quarter declined to $85.9 million from $86.2 million last year. Wall Street analysts expected the company to post revenues of $88.14 million for the quarter.
Fourth quarter operating loss was $1.9 million, compared to an operating income of $3.1 million in the prior year quarter.
Playboy Enterprises said fourth quarter results of 2007 included a charge of $1.9 million due to the sale of assets pertaining to the company's Andrita television studio. The company also plans to license the e-commerce business. Both deals are expected to close in the 2008 first quarter.
Further, during the recent quarter, the company gained $2.6 million towards tax benefit related to the UK television operations. The fourth quarter results of the previous year included $1.8 million charge pertaining to a legal settlement and $2.6 million tax benefit.
Playboy Enterprises expects to report a 30% drop in Playboy magazine's advertising revenues in the first quarter of 2008, partly as a result of the rate base reduction that became effective with the January 2008 issue and associated 13% decline in advertisement rates.
Full Year Results
For the full year, the company's net income rose to $4.9 million or $0.15 per share from $2.3 million or $0.07 per share last year.
The Chicago, Illinois-based company's net revenue for the year was $339.8 million, up from $331.1 million in the prior year.
PLA is currently quoting at $8.06, down $0.57 or 6.60%, on a volume of 186,400 shares on the NYSE.
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