Time Inc. reported financial results for its fourth quarter and full year ended December 31, 2014. Revenues for Q4 decreased $71 million or 7% versus the prior year to $895 million.
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Excluding the impact of the Corporate Transactions, Revenues would have declined 4%.
For the full year 2014, Revenues decreased $73 million or 2% versus the prior year to $3.28 billion. Excluding the impact of the Corporate Transactions, Revenues would have declined 5%.
Advertising Revenues declined $44 million or 8% in the fourth quarter of 2014 from the prior year to $496 million. Excluding the impact of the Corporate Transactions, Advertising revenues would have declined 2%.
For the full year 2014, Advertising revenues declined $32 million or 2% from the prior year to $1.78 billion. Excluding the impact of the Corporate Transactions, Advertising revenues would have declined 4%.
Print and Other Advertising Revenues decreased $46 million or 10% in the fourth quarter of 2014 from the prior year to $409 million. Excluding the impact of the Corporate Transactions, Print and other advertising revenues would have declined 8% driven primarily by fewer advertising pages sold. Among our core domestic advertising categories, areas of relative strength were pharmaceutical and financial with relative weakness in food/beverage, automotive and home.
For the full year 2014, Print and other advertising revenues decreased $50 million or 3% from the prior year to $1.48 billion. Excluding the impact of the Corporate Transactions, Print and other advertising revenues would have declined 8% driven primarily by fewer advertising pages sold.
Digital Advertising Revenues increased $2 million or 2% in the fourth quarter from the prior year to $87 million. Excluding the impact of the Corporate Transactions, Digital advertising revenues would have increased 34% reflecting strong growth in mobile, video, and programmatic. Time Inc. served 97.8 million multiplatform unique visitors during December 2014 in the U.S., up 32% since December 2013 (excluding CNNMoney.com).
For the full year 2014, Digital advertising revenues increased $18 million or 6% from the prior year to $298 million. Excluding the impact of the Corporate Transactions, Digital advertising revenues would have increased 17%.
Circulation Revenues, which are comprised of subscription, newsstand and other circulation revenues, declined $25 million or 8% in the fourth quarter of 2014 from the prior year to $288 million. Excluding the impact of the Corporate Transactions, Circulation revenues would have declined 8%.
For the full year 2014, Circulation revenues declined $34 million or 3% from the prior year to $1.10 billion. Excluding the impact of the Corporate Transactions, Circulation revenues would have declined 6%.
Subscription Revenues declined $14 million or 7% in the fourth quarter from the prior year to $191 million. Excluding the impact of the Corporate Transactions, Subscription revenues would have declined 6%. These declines were principally driven by lower demand for print subscriptions.
For the full year 2014, Subscription revenues declined $5 million or 1% from the prior year to $716 million. Excluding the impact of the Corporate Transactions, Subscription revenues would have declined 5%, reflecting lower demand for print subscriptions.
Newsstand Revenues declined $12 million or 12% in the fourth quarter from the prior year to $89 million. Excluding the impact of the Corporate Transactions, Newsstand revenues would have declined 12%. The decline in Newsstand revenues was primarily due to weaker demand, and fewer special issues at People which impacted revenues by $2 million.
For the full year 2014, Newsstand revenues declined $33 million or 8% from the prior year to $356 million. The impact of the Wholesaler Transition(1) adversely impacted Newsstand revenues from magazines by $14 million. The March 2014 price increase of People magazine provided a benefit of approximately $10 million. And, the weaker U.S. dollar relative to the British pound provided a benefit of $12 million.
Other Revenues, which includes marketing and support services provided to third parties, events, licensing and branded book publishing, decreased $2 million or 2% in the fourth quarter of 2014 from the prior year to $111 million. Excluding the impact of the Corporate Transactions, Other revenues would have remained flat. ■