Time Inc. reports a loss in both advertising and subscription revenue in the first quarter of 2012. Ad revenue decreased five percent (equivalent to $19 million), with subscription revenue down two percent (valued at $6 million). These losses contributed to a sizable overall revenue loss for Time Inc., down from $798 million in Q1 2011 to $773 million in Q1 2012.
Advertising revenue suffered due to struggling ad sales domestically, while lowered sub revenue was a result of lower domestic and international newsstand revenues, according to a company press release. However, domestic subscription sales are up for Time Inc., which helped offset the newsstand losses.
Adjusted operating income also dropped drastically, down 38 percent from $63 million to $39 million in year-over-year comparison. A company statement attributes this decrease to the decline in domestic magazine advertising revenues.
Time Inc. endured an operating loss of $4 million, falling from $63 million in the first quarter of 2011. The company attributes this in part to, “…a $42 million loss related to the sale of school fundraising business QSP which occurred in the first quarter of 2012.”
A silver lining for the company in an otherwise dreary first quarter: Time Inc. still retains the largest share of domestic magazine advertising at 21.8 percent, according to Publishers Information Bureau.