Men’s media group Playboy Enterprises yesterday revealed a Q3 loss of $6.5 million.
The company blamed the news on an earnings shortfall in its TV business, the EBITDA [earnings before interest, taxes, depreciation and amortisation] of which dropped year-on-year from $39.7m to $18.7m. Playboy blamed this on the $30m cost of launching networks outside the US.
The group also withdrew the IPO of its internet business. The Playboy.com site received 152.8m hits in September, a rise of 97% on the same month in 1999. Online revenues jumped 132% over the same period, while losses also rose from $5.6m to $18.8m.
Commented chair and chief executive Christie Hefner, daughter of founder Hugh Hefner: “We do not believe that under current market conditions we would receive a valuation that reflects the extraordinary potential of this business”.
News source: Financial Times