Time Inc. reports slightly higher ad revenue, lower circ revenue, and a net loss
The company run by a CEO who says he doesn’t understand the concept of church and state when it comes to editorial, reported its Q2 earnings on Tuesday. Time Inc. said that ad revenue was up nearly 3 percent, but circulation revenue fell due to lower newsstand sales.
The revenue loss was modest, but saddled as it is with other costs due to its spin-off and its layoffs, the company ended up reporting a net loss of $%32 million in the quarter, versus a profit of $75 million.
Spin-offs can lead to some odd looking P&Ls for a while, so maybe it would be good to see what the future holds. When looking at operating income minus goodwill impairment, restructuring and severance costs, Time Inc. is profitable – though only barely.
“On June 6th, we completed our separation from Time Warner. We are once again an independent public company, for the first time since January 1990,” said Time Inc. Chairman and CEO Joe Ripp.
“Time Inc. is undergoing a significant transformation as we extend our powerful brands across platforms, work to develop adjacent business opportunities, and move toward a leaner and more nimble operating culture. We had a solid second quarter, we are making real progress, and we are executing. However, we still face secular challenges, and we are in the early innings of driving change.”