Playboy Enterprises announced today in a press release that it has doubled its first-quarter profits compared to 2006, according to MarketWatch. Playboy shares rose by as much as seven percent following the publication of the company's first-quarter stock report.
With the help of a 77% increase in licensing revenues and a reduction in some expenses, Playboy posted a net first-quarter income of $1.5 million, up from $0.8 million during this period a year ago. Operating income was also up 10 percent.
Despite the rapid jumps in both its licensing business — mainly due to the new Playboy club in the Palms casino in Las Vegas — and its "new" media, such as mobile and online services, analysts had thought these gains would fail to compensate for sluggish prospects in the company's publishing and TV divisions.
As predicted, the company's flagship magazine continued its decline, posting an operating loss of $2.4 million. Playboy's domestic TV revenues fell 12% compared to 2006, a loss the company attributed in part to growing competition from VOD.
"The quarter's results demonstrate our belief in the very significant upside of our licensing business and strong growth potential of our newer digital media businesses," said Christie Hefner, chief executive, in the earnings report. "Moreover, we are responding to changing dynamics in the domestic TV and publishing industries."
