Time Inc. reports loss in Q3 as company writes down $952M of goodwill, ad total revenue falls, digital ads a bright spot, up 22%
Magazine publisher announced sale of Blue Fin Building in the U.K. as company looks to work through its debt inherited in the Time Warner spin-off
Time Inc. reported third quarter earnings before the bell this morning, reporting that the magazine publisher lost $913 million for the third quarter of this year, versus a profit of $48 million a year ago. The loss was caused by a goodwill impairment write down of $952 million.
“This non cash charge was a result of the recent decline in our publicly traded share price during the third quarter of 2015 and recent trends in advertising and circulation revenues,” the company stated in its earnings report.
Ad revenue fell $30 million in Q3 or 7 percent, while circulation revenue decreased $18 million or 6 percent. The bright spot was digital advertising revenue which increased $14 million or 22 percent in the third quarter.
“Time Inc. is building capabilities and new revenue opportunities in the fastest growing areas of media including video, native, live media, data and programmatic,” said Time Inc. Chairman and CEO Joe Ripp in the earnings announcement. “We are expanding our world-class brands, premium content and deeply engaged audiences into new revenue streams. We are aggressively moving the company forward to build the world’s most influential media network.”
Time Inc. made a couple announcement recently: the company sold its Blue Fin Building in the U.K. for £415 Million, and the publisher said it would shutter its title All You. It also has moved into new downtown headquarters, a move that the publisher says will result in $50 million of annual real estate savings.
The company is trying to both pay down its debt that Time Warner saddled it with at the time of the spin-off, while also boosting its share price which is down around 10 percent for the year. Recently the board authorized a $300 million stock repurchase program, and the stock is up slightly in pre-market trading.