UPDATE: Time Q2 Profit Beats Estimates

Time TIME posted better-than-expected second-quarter earnings. The New York-based company a quarterly loss of $32 million, or $0.30 per share, versus a year-ago profit of $75 million, or $0.69 per share. The latest quarter results included $55 million in restructuring and severance charges and $26 million in goodwill impairment related to the sale of GEX. Its adjusted earnings came in at $0.30 per share, versus $0.70 per share. Its revenue declined 1.6% to $820 million. However, analysts were expecting earnings of $0.16 per share on revenue of $821 million. Its digital advertising revenue climbed 12% y/y to $74 million, while revenue from print and other advertising rose 1% to $387 million. Circulation revenue declined 5.5% to $258 million in the quarter, while subscription revenue slipped 2% to $171 million. Advertising revenue rose 3% to $461 million, while newsstand revenue dropped 13% to $83 million. Its selling, general and administrative expenses rose 7% to $384 million. For the full year, Time projects revenue of $3.30 billion to $3.37 billion, and adjusted OIBDA of $510 million to $547 million. Time Chairman and Chief Executive Officer Joe Ripp said, “Time Inc. is undergoing a significant transformation as we extend our powerful brands across platforms, work to develop adjacent business opportunities, and move toward a leaner and more nimble operating culture. We had a solid second quarter, we are making real progress, and we are executing. However, we still face secular challenges, and we are in the early innings of driving change.” Time shares gained 1.17% to close at $24.31 yesterday.