Playboy, Martha Stewart Living Report Revenue, Net Losses for 2010
Digital takes a hit along with print.
Playboy Enterprises and Martha Stewart Living Omnimedia suffered losses in 2010, due to the still struggling economy and a changing media landscape.
Playboy says print/digital revenue fell 21.5 percent to $82.8 million in 2010. The domestic magazines generated $37.3 million, (down 32 percent from $55 million in 2009), while digital revenue fell 9.4 percent to $33.9 million.
For the fourth quarter the company reported a net loss of $14.7 million, or 43 cents per share, in 2010. According to the company’s earning statement, the fourth quarter results include a $12.5 million charge from a 2010 legal settlement.
Playboy magazine’s revenues were down 36 percent from 2009’s fourth quarter, coming in at $10 million. This included losses from a planned rate reduction and the production of three issues in 2010’s last quarter, as opposed to four issues released in 2009’s last time quarter. While Playboy says it saw higher revenue from mobile licenses, overall digital revenue fell in the fourth quarter due to lower pay site and advertising sales.
This may be Playboy’s last public report, if the deal with Playboy founder Hugh Hefner’s Icon Acquisitions Holdings L.P. goes through as planned by the end of 2011’s first quarter. Hefner offered $6.15 a share through Icon Acquisitions.
Martha Stewart Living Omnimedia’s fourth quarter revenue fell from 2009, sinking from $87.6 million in 2009 to $72.9 million at the end of 2010. The overall revenue from 2010 was $230.8 million, down 5.7 percent from 2009’s reported $244.8 million. Fourth quarter 2010 revenues were impacted by the end of relationships with Kmart and Turbo Chef earlier in the 2010 year that had added millions in revenue to 2009’s final quarter.
Publishing revenue for full-year 2010 was $145.6 million, down from $146.1 million in 2009. Martha Stewart Living reported a net loss of $9.6 million in 201, compared to a net loss of $14.6 million in 2009.
Both companies implemented strategies in 2010 in an attempt to improve earnings.
Playboy is currently transitioning to "a brand management company," says CEO Scott Flanders. Plans include outsourcing sections of Playboy’s publishing and licensing businesses, continuous efforts to reduce overhead as well as purchasing two Playboy venues in addition to the two clubs opened in 2010.
Martha Stewart Living Omnimedia released several digital apps and offerings in 2010, as well as striking up partnerships with the Hallmark Channel and Home Depot.