Playboy posts steep loss, will consider company sale

By Franklin Paul

NEW YORK (Reuters) - Playboy Enterprises Inc, publisher of one of the world's best known adult magazines, posted a wider fourth-quarter loss, hurt by $157.2 million in restructuring and other one-time costs, as well as weaker-than-expected revenue.

The company, which posted a net loss in each quarter of 2008, also said it would be open to discussions about an outright sale of the company, or changes in the strategic direction of the flagship Playboy Magazine.

Net loss for Playboy, which in recent months has seen a management shake-up including the resignation in December of longtime Chief Executive Christie Hefner, was $145.7 million, or $4.37 per share. This compares with a loss of $1.1 million, or 3 cents a share, in the year-ago period.

Revenue declined to $69.8 million from $85.9 million, due in part to the sale of its television studio assets.

Analysts had expected revenue of $73.7 million, according to Reuters Estimates.

In the fourth quarter, the company said its Entertainment Group profit doubled to $5 million, due to improved profitability in its domestic TV business. Revenue in the unit fell 21 percent.

In its licensing unit, which is responsible for placing the company's iconic bunny ears logo on everything from T-shirts to diamond pendants, income declined 38 percent to $4.3 million.

Last month, Playboy said it would cut jobs, consolidate online and print operations and take a writedown as the company struggles with a declining audience in a poor economy. The company cut 14 percent of its workforce in 2008.