Time Results Better Than Expected
May 05 2016 - 7:30AM
Dow Jones News
Time Inc. said it deepened its loss in the latest quarter,
weighed by higher spending as it invests in beefed-up digital
platforms, while revenue rose on higher digital advertising
sales.
The earnings and revenue results were better than analysts
expected. The company said its revenue growth was primarily due to
its recent acquisition of data-driven marketing firm Viant
Technology Inc.
Time—the world's largest magazine publisher whose covers include
People, Travel + Leisure, Fortune and its namesake TIME— spun off
from its former parent Time Warner Inc. in 2014 in one of many
moves by media giants to shed print assets.
Recently, Time said it would realign itself in an attempt to
bolster sales from its largest marketing clients. As part of that
push, the publisher on recently acquired Viant, which operates
several digital ad technology and media companies including Vindico
and Myspace.
The move to broaden its digital operations comes as print sales
continue to decline. In the latest quarter, Time said digital ad
revenue rose 23% to $90 million, primarily on the Viant
acquisition. But this is a smaller chunk of its revenue compared
with print ad sales, which declined 4% to $270 million.
Joe Ripp, Time's chief executive, said the quarterly results
reflect possible annual revenue growth this year. Mr. Ripp added
that the company would announce a slate of new video programming
and services.
"With households abandoning the cable bundle, and social
platforms providing new distribution opportunities, Time Inc. is
positioning itself to be a major player in digital video," he
said.
Over all, Time reported a loss of $10 million, or 10 cents a
share, compared with a loss of $9 million, or eight cents a share,
a year earlier. Excluding items, the company posted a loss of 11
cents a share compared with a loss of 6 cents a year ago.
Revenue rose 1% to $690 million. Analysts projected a loss of 14
cents on $675 million in sales.
Editorial costs increased 3% in the quarter, primarily driven by
digital investments. Other costs of revenues roughly doubled to $45
million on operational costs and expenses related to acquired
businesses.
Time backed its revenue guidance, projecting the top line to
rise between 1% and 5% after having fallen 5% in 2015.
Write to Joshua Jamerson at joshua.jamerson@wsj.com
(END) Dow Jones Newswires
May 05, 2016 07:15 ET (11:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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