No one expected that Playboy (NYSE: PLA) CEO Scott Flanders would have an easy time in his first year on the job. But the media company appears to be benefiting from the aggressive cost cutting Flanders undertook, as the he warned that ad declines at the flagship magazine would likely continue. The company managed to slim its Q1 net loss to $1 million from $13.7 million the year before. It was also able to stem losses at the print/digital segment for the year to $1 million from $3.6 million. Revenues for the quarter declined 10.8 percent due to lower pay site sales.
One area that Flanders promised to concentrate on was Playboy’s once lucrative licensing business. Efforts in that area appeared to be paying off, as Licensing Group segment income rose 17 percent to $6.5 million in Q1 as revenues were up 6 percent to $9.9 million. Royalties from two global licensing agreements and increased sales in Asia were largely responsible for the improvements.
The Entertainment Group’s results were mixed. The segment’s income was $3.6 million in 2010, up 21 percent from last year on an 8 percent drop in revenues to $24.0 million from $26.2 million. Again, lower costs were credited with the improvement in profits.