Time Inc. revenue holds steady, but lowers full year forecast due to weaker print advertising
Time Inc. to expand video strategy, announcing it will partner with the newly formed company Rampante to launch its own standalone video production unit
The recently spun off Time Inc. this morning reported third quarter earnings, reporting stronger digital advertising, but lowering its full year forecast due to weaker than expected print advertising.
“Our third quarter Adjusted OIBDA performance was better than expected given strong growth of digital advertising revenues and benefits of our efficiency initiatives,” Time Inc.’s Chairman and CEO, Joe Ripp said.
“However, as a result of the weakening of print advertising trends late in the quarter, we are taking steps to counter the revenue headwinds. We remain committed to managing the business for stable margins and cash flows. We remain confident in our plans to drive large scale transformation as we extend our powerful brands across platforms, work to develop adjacent business opportunities, and move toward a leaner and more nimble operating model,” Ripp said in the earnings statement.
Total revenue was up in Q3 by $3 million to $821 million. Digital ad revenue increased 5 percent to $65 million. Circulation revenue fell slightly, down 2 percent, with subscription revenue down a modest 1 percent.
Operating income fell $9 to $106 million, due to restructuring and severance charges and higher depreciation and amortization expenses. Net income fell to $48 million version $68 million in the same quarter of 2013.
Time Inc. lowered its full year revenue forecast to $3.27 billion to $3.30 billion, stating that print advertising bookings have been weaker than expected.
Time Inc. also announced today that it will partner with studio and distribution executive Emiliano Calemzuk, and his newly-formed company Rampante, to launch a standalone development and production unit aimed at creating a multi-platform video library.
“We are expanding our video strategy to leverage the breadth of our portfolio in a cohesive, high-volume way. By partnering with Emiliano, we are gaining experience in television production and international channel distribution. Moreover, without taking on unnecessary overhead, we will have an immediate presence in Los Angeles,” commented Time Inc. Chairman and CEO, Joe Ripp.