Time Results Better Than Expected

Time Inc. said it deepened its loss in the latest quarter, weighed by higher spending as it invests in beefed-up digital platforms, while revenue rose on higher digital advertising sales.

The earnings and revenue results were better than analysts expected. The company said its revenue growth was primarily due to its recent acquisition of data-driven marketing firm Viant Technology Inc.

Time—the world's largest magazine publisher whose covers include People, Travel + Leisure, Fortune and its namesake TIME— spun off from its former parent Time Warner Inc. in 2014 in one of many moves by media giants to shed print assets.

Recently, Time said it would realign itself in an attempt to bolster sales from its largest marketing clients. As part of that push, the publisher on recently acquired Viant, which operates several digital ad technology and media companies including Vindico and Myspace.

The move to broaden its digital operations comes as print sales continue to decline. In the latest quarter, Time said digital ad revenue rose 23% to $90 million, primarily on the Viant acquisition. But this is a smaller chunk of its revenue compared with print ad sales, which declined 4% to $270 million.

Joe Ripp, Time's chief executive, said the quarterly results reflect possible annual revenue growth this year. Mr. Ripp added that the company would announce a slate of new video programming and services.

"With households abandoning the cable bundle, and social platforms providing new distribution opportunities, Time Inc. is positioning itself to be a major player in digital video," he said.

Over all, Time reported a loss of $10 million, or 10 cents a share, compared with a loss of $9 million, or eight cents a share, a year earlier. Excluding items, the company posted a loss of 11 cents a share compared with a loss of 6 cents a year ago.

Revenue rose 1% to $690 million. Analysts projected a loss of 14 cents on $675 million in sales.

Editorial costs increased 3% in the quarter, primarily driven by digital investments. Other costs of revenues roughly doubled to $45 million on operational costs and expenses related to acquired businesses.

Time backed its revenue guidance, projecting the top line to rise between 1% and 5% after having fallen 5% in 2015.

Write to Joshua Jamerson at [e-mail]

(END) Dow Jones Newswires

May 05, 2016 07:15 ET (11:15 GMT)

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