Playboy Enterprises, Inc., realized a third-quarter profit of $1.9 million, primarily from new Adult cable networks in the United Kingdom and the continuing rollout of VoD in the United States, combined with a sharp increase in advertising sales of the company’s namesake magazine.
Playboy reported a third-quarter loss in 2003.
Overall revenue was up eight percent to $80.2 million, with nearly half that amount coming from the entertainment division. Lower DVD and VHS sales dropped the overall profitability of the entertainment division, which was buoyed primarily by its international and domestic cable operations.
Playboy enjoyed a 40-percent increase in advertising pages for their flagship magazine — something that Playboy chairman and CEO Christie Hefner attributed to the magazine’s editorial strength.
Another factor to which Hefner credits Playboy’s turnaround is the company’s recent organizational shift.
"2004 has been a significant year for us in terms of executing deals that will benefit the company for years to come, increasing the efficiency of our operations and improving our overall financial position,” Hefner said in a statement announcing the third quarter results. “Looking ahead, we expect to benefit from these actions.”
Playboy recently reorganized the Playboy Entertainment Group, rolling online operations into the entertainment division.
