Playboy loss widens, search continues for CEO

By Paul Thomasch

NEW YORK (Reuters) - Playboy Enterprises Inc, publisher of one of the world's best known adult magazines, posted on Monday a wider first-quarter loss under the weight of a depressed advertising market and slow consumer spending.

The company, which has said it would be open to discussions about an outright sale, reported a loss of $13.7 million, or 41 cents per share. This compares with a loss of $4.2 million, or 13 cents per share, in the year-ago period.

Before restructuring and impairment charges, the company lost 15 cents a share for the quarter.

Blaming in part an economic slowdown that has curtailed advertising spending, the company said revenue declined to $61.6 million from $78.5 million a year before.

To make up for revenue shortfalls, the company has been sharply cutting costs, including a 25 percent reduction in staff numbers since last October.

Shares of Playboy dropped 6 cents or 1.8 percent to $3.25. Earlier, they traded as low as $3.12.

Playboy's flagship magazine has been particularly hard hit, though the company said on Monday that the "magazine's bottom line will improve in 2009 versus last year."

Playboy Interim Chief Executive Officer Jerome Kern added, however, that the magazine's performance is not acceptable and changes will be made.