Time Beats Q2 Estimates

reported stronger-than-expected results for the second quarter on Tuesday. The New York-based company reported a quarterly net profit of $24 million, or $0.22 per share, versus a year-ago net loss $32 million, or $0.30 per share. Excluding one-time items, the company's earnings came in at $0.27 per share. Its total revenue slipped to $773 million from $820 million. However, analysts were expecting earnings of $0.15 per share on revenue of $758 million. Advertising revenue dropped 9 percent to $420 million in the quarter, while print and other advertising revenue declined 11 percent to $343 million. Digital advertising revenue rose 4 percent to $77 million, while circulation revenue shrank 2 percent in the second quarter to $254 million. Subscription revenue slipped 3 percent year-over-year to $166 million in the second quarter, while newsstand revenue fell 1 percent to $82 million. Production costs dropped 8 percent year-over-year to $176 million in the recent quarter, while editorial costs shrank 16 percent to $93 million. The company's board declared a dividend of $0.19 per common share. Time Inc. Chairman and CEO Joe Ripp said, "As an independent public company, Time Inc. is renewing the organization's creativity, entrepreneurship and innovation. We are extending our brands and content assets wherever audiences wish to experience them. We remain confident in our plan to fundamentally reengineer the business and reposition our company for its return to growth. 2015 continues to be a pivotal year as we launch a portfolio of growth initiatives and invest to develop new revenue streams including through key acquisitions, and continue our disciplined capital allocation strategy." Time shares fell 2.06 percent to close at $21.86 yesterday.