Playboy in Profits, Riding Online Group

Playboy Enterprises has swung into profit, on the strength of its website and television operations. Profits came in at $600,000, compared to a net loss of $9.4 million a year ago. Revenues: $74.3 million, up 12 percent from $66.1 million in the same period last year. Shares on NYSE jumped 15 percent on the news today and stood at $11.43 at market close.

Online revenues, according to the company release: “The Online Group reported an operating profit of $0.3 million in the 2003 first quarter versus a $3.6 million operating loss in the prior year. The swing was due both to a 45% improvement in first quarter revenues to $9.2 million as well as expense reductions implemented last year. The Group’s largest revenue stream, subscriptions, more than doubled in the quarter to $4.1 million as the company benefited from a price increase for Playboy Cyber Club in the fourth quarter of 2002, as well as the introduction of new clubs, which contributed to a 35% growth in total subscribers. E-commerce revenues grew 33% in the 2003 first quarter compared to last year’s quarter primarily due to the timing of catalog mailings, while revenues from other sources were basically flat.”

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