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Summary:

Layoffs at Playboy (NYSE: PLA) — the company has cut a quarter of its staff since October 2008 — helped counter some of the revenue decli…

Layoffs at Playboy (NYSE: PLA) — the company has cut a quarter of its staff since October 2008 — helped counter some of the revenue declines during the first quarter of 2009, but they weren’t enough to lift the adult-entertainment company into profitability. Playboy’s revenue declined 22 percent, to $61.6 million, below analyst expectations of $71.7 million. Loss-per-share was $0.15 when one-time impairment and restructuring costs are excluded (and $0.41 when these costs are included).

Print/Digital: Revenue decreased 26 percent to $26.1 million, with magazine revenue down 16 percent and digital off 39 percent. While some of the drop in digital was due to the company’s ongoing problem with lower pay-site revenue, it was also a function of the fact that Playboy recently began outsourcing its e-commerce.
Entertainment: Revenue decreased 20 percent to $26.2 million, a video-on-demand sales were weak.
Licensing: Revenue declined 11 percent to $9.3 million.

Playboy has been hard-pressed the last year to find bright spots in its results. The company has seen its print revenue drop as advertisers have fled the medium, and it has struggled to find its footing online as more consumers have turned to free and harder-core adult entertainment.

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  1. I'm not surprised with this result. Considering the availability of so many free hard core resources over the net, who among people will still be willing to pay if they can get it for free? Absolutely, NO ONE!

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  2. Maria,

    Come on now. That's just one viewpoint of the bigger story here. The truth is that Playboy has a wide range of loyal fans who pay good money to access the original content Playboy distributes.

    Furthermore, Playboy's offering is well polished, compelling and selling well. They just need to get their billing issues under control and a I think their digital offering will go back into the black.

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