Life as a public company hasn’t been easy for Time Inc. Then again it hasn’t even been a year yet since the company left the TimeWarner mothership. Time Inc reported its fourth quarter and full year earnings this morning and things are not where CEO Joe Ripp and shareholders would love them to be. However, he said he and his team are excited about 2015. Here are some low-lites.
- Overal Revenue slipped 7.3%
- Revenue’s missed analysts estimates of $904.3 coming in at $895 million
- Net income more than doubled to $145 million
- Digital ad revenue ticked up a tiny tiny tiny bit from $85 million to $87 million.
- Circ revenue, which includes subscription and newsstand sales, fellb 8% to $288 million
- Headcount reductions lead to a pre-tax charge of $28 million
- It earned 73 cents per share missing analysts’ expectations of 78 cents per share.
- The company announced plans to distribute a quarterly dividend of $0.19 per share on March 13
- Time Inc blamed some of the decline on the acquisition of Cozi and the lost partnership with CNNmoney
- CEO Joe Ripp spun the performance as part of a larger growth process
“Over the past year, we’ve been fundamentally re-engineering the
business, and re-positioning our company for its return to growth. We
have made significant progress toward the transformation of the cost
structure, and successfully protected our margins and cash flows. We
accelerated the growth and monetization of our digital audiences. We
also became a stand-alone public company for the first time
since January 1990. As we look forward, we expect 2015 to be a pivotal
year as we launch a portfolio of growth initiatives. One of the unique
sources of upside for Time Inc. is the ability to extend our powerful
brands into new revenue streams. We are very excited by the
opportunities provided by our brands.”
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