Time Inc. said Tuesday that it swung to a second-quarter profit, thanks in part to cost-saving measures that counterbalanced declines in print advertising.
The New York-based publisher of InStyle, Fortune, Time and People spun off from Time Warner a year ago, and since then it has been slashing expenses and making strategic investments as it evolves the business to rely less on print and more on digital and events.
For the quarter ended June 30, the company swung to a profit of $24 million, or 22 cents a diluted share compared with a year-ago loss of $32 million, or 30 cents a share. Excluding items, it earned 27 cents a share.
Quarterly revenue slid 5.7 percent to $773 million from $820 million.
The media firm beat Wall Street’s projections of EPS of 15 cents on revenue of $758 million.
“When I returned to Time Inc. it was obvious to me that a key to our transformation was to extend our brands, our coverage and our deeply engaged audiences across all platforms; desktop, mobile, social, video, live media, commerce, products and services,” chairman and chief executive officer Joe Ripp said on Time Inc.’s earnings call. “We have been a standalone company for just over a year and our transformation continues to build momentum. Enhancing our core business is at the center of Time Inc. strategy. This begins with the reinvention of content creation for new age.”
Although Time Inc. is focusing on its digital future, print is still responsible for the bulk of the company’s advertising revenue.
During the quarter, the publisher said print advertising revenues declined 11.4 percent to $343 million from $387 million. Digital ad sales grew 4.1 percent to 77 million, from $74 million, a year earlier.
Revenues from circulation remained relatively flat, slipping 1.6 percent to $254 million.
Time Inc. said results were helped by a strong dollar, which reduced editorial and production costs by 10.1 percent, as well as a 78.1 percent decline in restructuring and severance costs.