Market Overview

Time Q1 Loss Widens, But Beats Expectations, Confirms Full Year Forecast

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Time Inc (NYSE: TIME) reported a wider net loss of $10 million or a loss of $0.10 a share in the first quarter than $9 million or $0.08 a share suffered in the year-ago quarter. On an adjusted basis also its loss widened to $11 million or a loss of $0.11 a share from a net loss of $7 million or a loss of $0.06 in the comparable period.

Time's revenues rose marginally by 1.5 percent to $690 million from $680 million in the year-ago quarter. The results were better than the Street expected as it expected a loss of $0.14 a share on revenue of $675.39 million.

The company's Chairman and CEO, Joe Ripp, reacted to the results and said, "Our first quarter results reflect progress toward achieving revenue growth in 2016. We are seeing double digit growth of Digital advertising and Other revenues driven by acquisitions and growth investments. We are making progress to transform Time Inc. into a multi-platform, multimedia enterprise and we are infusing digital culture into our day-to-day operations."

He continued further to say, "Our acquisition of Viant is enhancing the breadth and depth of our first party data. It will enable us to deliver advertisers' messages to specific audience segments across all their connected devices, and to measure the true sales impact. Also, today at our Newfront presentation, we will be announcing a slate of new video programming and services. With households abandoning the cable bundle, and social platforms providing new distribution opportunities, Time Inc. is positioning itself to be a major player in digital video."


Going forward, Time said that there were no changes in its outlook for the current year. Accordingly, the company expects to deliver 1–5 percent growth in revenue for the year 2016 compared to 5% drop witnessed last year. Analysts expect the company to report 1.6 percent growth.

Posted-In: Earnings News Guidance

 

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