Il gruppo Time, a cui fanno capo riviste quali Time, People e Sports Illustrated, ha riferito che i ricavi fino ad ora registrati sono stati “più deboli del previsto”, con aspettative di profitto inferiori alle attese che oscillano tra il -3% e il -6% per l’anno in corso, rispetto al -2% previsto dagli analisti.
Time Inc warns print business will drag down revenues in 2015
(FT.com, 12 febbraio 2015) Time Inc shares fell as much as 12 per cent on Thursday morning as the publisher of magazines including People, Sports Illustrated and Time reported weaker than expected revenue and profit figures, and warned that its print business would be a further drag on revenue this year.
Revenue is projected to fall 3-6 per cent in 2015, worse than the 2 per cent drop analysts had forecast, as the company struggles to reshape its business as consumers shift from print to digital media.
Time was spun out of Time Warner last year and on Thursday the company laid out a wide-ranging plan to find new sources of growth in the coming years.
The business has been cutting costs and in the fourth quarter launched a restructuring plan resulting in a $28m pre-tax charge. It expects cost savings of $110m in 2015.
The publisher has also been pursuing a broader transformation by building new revenue streams that it hopes will offset declining circulation and print advertising sales.
This year it will test paywalls on many of its websites, launch a new online fashion and beauty network that will include an ecommerce function, and boost video production, programmatic and native advertising, and marketing services.
Joe Ripp, chief executive, said: “Our objective for our growth initiatives is to plant seeds” that will lessen the company’s dependence on print advertising, which made up more than half of 2014 sales, over the next four to five years. “We are placing bets where we think we have an edge or an advantage.”
Mr Ripp was speaking as Time reported weaker than expected earnings in the fourth quarter, dragged down by lower circulation and ad sales.
Revenue fell 7 per cent to $895m, missing analysts’ forecast of $904m.
Advertising sales declined 8 per cent to $496m, with a 10 per cent drop in print ads outweighing a 2 per cent gain in digital advertising. Print advertising, at $409m, still makes up a far larger portion of revenues than digital, at $87m.
Circulation of print products was also weaker. Sales of Time’s magazines on newsstands dropped 12 per cent to $89m and subscription revenues fell 7 per cent to $191m.
Net income in the fourth quarter rose to $145m, or $1.32 a share, from $66m, or 61 cents a share, a year ago. (Ft.com)
But adjusted for some items including restructuring costs and expenses related to acquisitions, investments and dispositions, earnings fell to 73 cents a share from $1.02 and missed analysts’ estimates of 78 cents.
For the full year, net income dropped to $80m, or 80 cents a share, from $201m, or $1.85 a share in 2013. Revenue fell 2 per cent to $3.28bn.
By close of New York trading, Time shares pared back earlier losses, closing down 1.8 per cent at $24.49. (Ft.com)