Time Inc. Revenues, Operating Income Decline Slightly in 2006 (posted 1/31)
Time Inc. saw its total revenue and operating income decline slightly in 2006, even as its parent company, Time Warner, saw a jump in both.
Time Inc.’s total revenue in 2006 was $5.249 billion, a $29 million or 1 percent decrease over 2005’s $5.278 billion in revenue, according to a statement released today from Time Inc’s parent company, Time Warner. Time Warner’s revenues for the year rose 4 percent over 2005 to $44.2 billion. Its net income grew 11 percent o $11.1 billion, reflecting double-digit gains in the company’s cable and network segments.
Operating Income at Time Inc. declined 3 percent or $28 million to $1.1 billion, as slight increases in the company’s magazine business and lower stock compensation expense was offset by declines at Synapse, Time Inc.’s subscription marketing business.
The company chalked up the declines in total revenue to an $18 million loss in subscription revenues, a $14 million decline in content revenues and a $48 million decline in “other” revenues. The losses were partially offset by a 2 percent or $51 million increase in advertising revenues, with decreases in print advertising revenues offset by growth in online advertising revenues.
As its print revenues continue to decline, Time Inc. has been repositioning itself for growth in the digital space. As part of this process the company has laid off almost 900 employees over the past 14 months, including 289 employees this month. It also sold off 18 magazines in its Time4Media and Parenting groups last week to Swedish publisher Bonnier in an effort to focus its attention on its core titles such as People, Sports Illustrated and Time.
Time Inc. Earning Results
Fourth Quarter 2006 (millions)
Fourth Quarter 2005
Full Year 2006 (millions)
Full Year 2006
Adjusted Operating Income