Time Inc. Reports Revenue Loss for 3rd Quarter 2010
Time Inc., the publishing branch of Time Warner Inc. and the largest magazine publishing company in the United States, reported an overall revenue loss for the third quarter of 2010 despite rising ad revenue.
Although advertising revenue at Time Inc. increased 5 percent, there was an equal decrease in subscription revenue and an additional 12 percent drop in other revenues, according to a company earnings report released last week.
Total publishing revenue in the last three months ended Sept. 30 saw a decrease of just over 1 percent compared to the previous year. Higher print ad revenues were offset by lower ad rates and movement to digital, while subscription revenues fell as a result of lower domestic sales and unfavorable exchange rates. While Time Warner analyst Thomas Eagan told CNN Money he expects Time Inc. will continue to struggle with subscription revenue, small and consistent increases in ad revenue are expected.
Revenues were also impacted by the last year's sale of Southern Living at Home and lower revenues at Synapse Group Inc., the earnings statement said.
Time Warner's overall earnings have exceeded expectations, with growth in the Networks segment driving a 2 percent revenue increase in the quarter. The company's film division, Warner Bros., has been relatively flat.
“Time Warner achieved strong performance yet again in the quarter and, with Adjusted EPS up more than 35% through the first three quarters, we remain on track for a very strong year," CEO Jeff Bewkes said in a press release. "Our strategy of focusing on high-quality branded content continues to pay off."