Home »Company News » World » Time Inc’s revenue, profit down

Time Inc, publisher of Sports Illustrated and People magazines, reported lower-than-expected quarterly profit and revenue on Thursday, hurt by a stronger dollar. The company said print ad revenue, which accounts for more than two-thirds of its total ad sales, fell 10.2 percent in the fourth quarter ended December 31 from a year earlier. However, digital advertising revenue rose about 63 percent.

Time Inc's revenue fell to $867 million from $877 million, missing the average analyst estimate of $872.7 million, according to Thomson Reuters I/B/E/S. The company said exchange rate fluctuations between the US dollar and the British pound had a $22 million adverse impact on quarterly revenue. For both the three and nine months ended September 30, revenue from the United Kingdom accounted for 10 percent of total revenue.

The company has been the subject of buyout rumours as the poor performance of print media continues to affect the publishing industry and companies increasingly use digital media for advertising. Time Inc's net profit rose to $56 million, or 56 cents per share, in the quarter, from $17 million, or 15 cents per share, a year earlier. Excluding items, the company earned 75 cents per share, missing analysts' average estimate of 78 cents per share.

Copyright Reuters, 2017


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