Time Inc.’s revenue for the quarter ending June 30 was lower than expected, the publisher reported on Tuesday. The loss was attributed to industry-wide issues of declining magazine and advertising sales.
Revenue dropped to $694 million, missing analysts’ expectations of $703.5 million. This represents a 10 percent drop from the same quarter last year, when revenue came in at $769 million. Circulation revenue fell 12 percent from the same quarter last year, to $207 million and revenue from advertising dropped 17 percent $374 million.
The company, which decided against pursuing a potential sale earlier this year, announced various initiatives to target a cost savings of more than $400 million.
“We’ve been moving with speed and, most significantly, we are announcing today, a strategic transformation program based on a thorough review of Time Inc.’s business,” Time Inc. chief executive officer Rich Battista said. “Through this review, we have greater confidence in our path to accelerate the optimization of costs and revenue growth drivers.”
With the cost-cutting program, Battista said, the company sees “a path to a minimum range of $500 million to $600 million of adjusted operating income before depreciation and amortization within the next three to four years.”
In June, Time Inc. slashed 300 jobs worldwide as part of the ongoing effort to curb costs.