TIME’S UP: Executives at rival publishing companies have been waiting for Time Inc.’s third-quarter numbers to be released to see if those occasional dips in People’s newsstand sales had a material impact on revenues. Well, the firm’s parent, Time-Warner Inc., reported results on Wednesday and it turns out the slips at People weren’t the only issue. Time Inc. reported revenues fell 1 percent in the third quarter to $889 million on weaker advertising, while operating income declined 12 percent to $124 million. The group didn’t mention People, instead blaming the sharp decline in profits on higher expenses such as increased paper costs.
People recently reported higher-than-average newsstand sales with its cover featuring Kim Kardashian’s wedding, selling 1.5 million copies. It will be interesting to see how this week’s cover, featuring the divorce, does.
This story first appeared in the November 3, 2011 issue of WWD. Subscribe Today.
As for Time-Warner overall, revenues rose 11 percent to $7.1 billion, reflecting higher revenues in its filmed entertainment unit thanks to the final installment of the “Harry Potter” series and the networks divisions, while operating income rose 18 percent to $1.6 billion.