Time Inc., the largest magazine publisher in the United States, reported a fall in quarterly revenue, hurt by a decline in subscription revenue and newsstand sales, and cut its full-year revenue forecast.
The publisher of Sports Illustrated, Time magazine, and People is facing steadily declining circulation and advertising revenue—like Meredith Corp. and News Corp.—as consumers shift to reading on smartphones and tablets.
This is Time's first earnings report following its spinoff from Time Warner. Time publishes more than 90 titles and operates 45 websites, and gets more than half of its revenue from advertising.
The company cut its full-year revenue forecast to $3.30 billion to $3.37 billion from $3.35 billion to $3.42 billion, citing a payment default by its second-largest wholesaler, the relocation of its headquarters and sale of Mexican publishing unit Grupo Expansion.
Analysts on average were expecting revenue of $3.35 billion, according to Thomson Reuters I/B/E/S.
Time posted a loss of $32 million, or 30 cents per share, for the second quarter ended June 30, compared with a profit of $75 million, or 69 cents per share, a year earlier.
On an adjusted basis, the company earned 30 cents per share.
Revenue fell 1.6 percent to $820 million. Subscription revenue fell 2 percent, while newsstand sales fell 13 percent.
Advertising revenue rose about 3 percent.
Analysts expected an adjusted profit of 16 cents per share on revenue of $821.3 million.
The company's shares closed at $24.31 on Monday. The stock started trading publicly in June.
—By Reuters