Thanks to the money it has poured into the online side of its business, Playboy Enterprises expects a bigger first-quarter loss compared to the same period in 1999.
The umbrella of Hugh Hefner's softcore empire reports an operating loss of $5.7 million for the online side, compared with $2 million in the first quarter of 1999. However, the company also believes online revenues will expand to some $5.8 million, compared to $2.2 million a year earlier.
This news comes almost a week after Playboy Enterprises signed a letter of intent with Ladbroke Casinos, Ltd. to develop a London gaming club and separate nightclub, seen as a kind of return to the glory days when the Playboy Club was a favorite spot on the Swinging London scene of the 1960s. The Playboy Club fell in 1981, when gambling licenses were revoked because of British gaming law violations.
Playboy Enterprises overall posted a fiscal 1999 loss of $5.3 million on revenues of $347.8 million.
