3 Things You Should Know About Time Inc.’s Q1 Financials
Revenue, cash flow continues to tumble.
Time Inc. released its 2015 first quarter earnings report today with little to celebrate. In a nutshell, nearly everything is trending downward. But in fairness, the company tightened its belt and divested holdings skewed some of the numbers in a year-over-year comparison.
Here are three key takeaways:
Total revenue fell by 9 percent when compared to last year. The company pulled in $680 million in the first quarter this year compared to $745 million last year. It attributes 3 percent of that regression to unloading CNNMoney and GEX last year.
Print and other advertising dropped significantly, declining 12 percent compared with last year. During Q1 2014 the company earned $390 million in advertising revenues, versus $353 million this year. The bulk of its advertising revenue is still coming in through print and “other” advertising. But digital still has a long way to go, as it accounts for less than a third of its overall ad revenues and it only grew by 1 percent this year. Nevertheless, the company reports that it’s outperforming the industry and its domestic share increased by 0.8 percent to 26.3 percent.
The company futher reduced its free cash flow. By selling off assets and streamlining operations, Time Inc. freed up cash which it then redistributed and invested. During the first quarter of last year it was negative $7 million in free cash flow, and this year it drew negative to $24 million—paying out a $21 million dividend and making $13 million in investments contributed to the negative balance line. That said, the investments could prove to generate more revenue for the company down the road.