Sports Illustrated publisher Time Inc net loss plunges to $913m
Media company Time Inc, which publishes Sports Illustrated, InStyle and Time magazine, earlier today reported a net loss of $913m (£600m) for its third quarter of 2015, swinging from a net profit of $48m for the same period last year.
Goodwill impairment of $952m, caused in part by falls in Time Inc’s share price, was one of the main reasons behind the drastic dip into the red.
The market did not take the news well. Share prices plummeted, hitting a low of $17.30, down 9.1 per cent from $19.03 on last night’s close, within the first few hours of trading.
Revenue for the last three months also fell, although much more modestly, to $773m, down six per cent from $821m in the third quarter of 2014, with the company pointing to the US dollar’s strength against the pound as one of the reasons behind the drop.
But, although advertising revenue from Time Inc’s print products had dropped 12 per cent to $319m from $363m, advertising revenue from digital rose 22 per cent to $79m from $65m. Recently, the company purchased women’s lifestyle website HelloGiggles, which counts actress Zooey Deschanel as one of its founders.
Time Inc chairman and chief executive Joe Ripp said, “Time Inc is building capabilities and new revenue opportunities in the fastest growing areas of media including video, native, live media, data and programmatic. 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.”
The company also revealed that it had agreed the sale of its iconic Blue Fin building on London’s South Bank for £415m. If the sale goes as planned, Time Inc will issue a share buyback of up to $300m.