Advertising growth lifts Playboy's profit

Playboy Enterprises Inc. on Tuesday said it rebounded to post a third-quarter profit as advertising rose sharply at the company’s flagship magazine.

The Chicago-based magazine and entertainment company reported net income of $1.9 million, or 6 cents a share, for the latest quarter, compared with a loss of $600,000, or 3 cents a share, a year earlier.

Revenue climbed 7.8 percent to $80.2 million from $74.4 million.

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The publishing segment generated revenue of $29.5 million, up 3.5 percent from a year earlier, as results were helped by a 35 percent increase in advertising revenue at Playboy magazine.

Entertainment-group revenue increased 8.3 percent to $36.4 million on higher international television sales, mainly due to the launch of new networks in Britain earlier this year, and the continued rollout of video-on-demand services in the United States.

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Online revenue increased 9 percent to $9.7 million amid a 13 percent increase in subscription revenue. Licensing revenue climbed 35 percent to $4.6 million on higher royalties from international and entertainment licensing.

Corporate administration and promotion expenses rose to 14 percent to $5 million, in line with company projections.