Time Inc. this week reported flat revenue of $1.1 billion for the first quarter of this year. The company’s operating income fell 12 percent or $16 million to $116 million, the company said in its earnings statement. Although the company’s advertising revenue increased for the quarter by $12 million, the increase was offset by a $9 million decrease in subscription revenue. The company attributed the increase in ad revenue to Time’s acquisitions of Essence and Grupo Editorial Expansion, as well as increased revenue from recent magazine launches.
The decrease in operating income before depreciation and amortization was driven by declines in the company’s international magazines, as well as $12 million in restructuring charges, offset by lower stock compensation expense and start-up launches. Despite the loss in its publishing arm, Time Warner (Time Inc.’s parent company) reported that overall profit jumped jumped nearly 60 percent to $1.46 billion, or 32 cents a share, in the January-March period from $915 million, or 19 cents per share a year ago, and revenues rose 1 percent to $10.46 billion.
Meanwhile, the company’s multimedia and enthusiast division, Time4Media announced this week that it has launched a production enterprise called Time4Entertainment, which will be led by former president of RKO Pictures, Paul Speaker.
In his new position, Speaker will oversee the company’s television, film and video/DVD content and will be responsible for developing new television, film and video/DVD products to complement Golf Magazine, Popular Science, Field & Stream, Outdoor Life, Ski and Yachting. "Although traditional media is our focus, we fully plan to exploit the numerous distribution platforms that continue to drive new business including digital, mobile and the Web," said Time4Media President Thomas Beusse in a statement.