Playboy posts lower 3rd-qtr. net on 18% rev increase

Playboy Enterprises Thursday announced that operating income for the fiscal 1993 third quarter ended March 31 rose 76% to $ 1.2 million from $ 700,000, reflecting a profit increase at the company’s publishing operations. Before one-time move-related expenses of $ 300,000 in the quarter, operating income would have more than doubled.

Revenues for the quarter rose 18% to $ 53.9 million from $ 45.6 million in the same period last year.

Net income, however, declined to $ 500,000, or 3 cents per share, compared to $ 900,000 (5 cents ), primarily reflecting the quarter’s lack of net investment income due in part to Playboy’s increased investment in entertainment programming.

Playboy reported that Entertainment Group revenues rose 66% for the third quarter to $ 12.1 million with gains in all three areas of distribution: U.S. pay television, homevideo and international.

As a result of increased programming and marketing expenses, Entertainment Group operating income for the quarter was equal to last year’s at $ 1.4 million. Playboy dropped 12 cents yesterday to close at $ 8.38.

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