Time Inc. Q2 circulation revenues decreased $29 million
Staff Writer |
Time Inc. reported financial results for its second quarter ended June 30, 2017.
Article continues below
Circulation Revenues decreased $29 million, or 12%, in the second quarter of 2017 from the year-earlier quarter to $207 million as a result of the continued shift in consumer preferences from print to digital media and fewer issues served to customers, primarily due to a change in frequency in 2017.
The stronger U.S. dollar relative to the British pound had a $5 million adverse impact on Circulation revenues for the quarter ended June 30, 2017.
Excluding the impact of U.S. dollar/British pound exchange rate changes, Circulation revenues would have decreased 10%.
President and CEO Rich Battista said, "I am pleased with our second quarter Adjusted OIBDA of $88 million, which was roughly flat year-over-year.
"Our revenues continued to be impacted by disruption through the first half of 2017, as we said on our last call.
"Despite that revenue disruption, we executed in a highly disciplined way, which enabled us to beat Adjusted OIBDA expectations.
"The third quarter represents an important turning point for the Company as we are seeing strong momentum and sequential improvement of year-over-year trends for total advertising revenues. Today, we are reaffirming our 2017 Adjusted OIBDA outlook.
"On our last earnings call, we outlined aggressive actions—building on what we had accomplished to date—to reduce costs, expand margins, rationalize our portfolio and extend our brands into new growth revenue streams.
"We’ve been moving with speed and, most significantly, we are announcing today, a strategic transformation program based on a thorough review of Time Inc.’s business.
"Through this review, we have greater confidence in our path to accelerate the optimization of costs and revenue growth drivers.
"We have already targeted more than $400 million of run-rate cost savings, with the majority of initiatives expected to be implemented over the course of the next 18 months.
"We plan to use a portion of these savings to invest in our future in key growth areas including native and branded content, video, data and targeting, paid products and services, and brand extensions.
"With this program, we expect to realize significant cost savings and reinvest in our future, and we see a path to a minimum range of $500 million to $600 million of Adjusted OIBDA within the next three to four years." ■