Time Inc Shared Its 2nd Quarter 2015 Report Card, Here are The Highlights and Lowlights, Company Still in a Downward Pattern

Its that time again. America's biggest magazine publisher, Time Inc shared its report card with the world and even though the company's quarterly profits beat Wall Street's predictions, overall it is still in a slide. But the team is still confident about their plan to put the company on a growth path.

Time Inc. Chairman and CEO Joe Ripp said, “Over a full year has passed since our spin-off from Time Warner. As an independent public company, Time Inc. is renewing the organization’s creativity, entrepreneurship and innovation. We are extending our brands and content assets wherever audiences wish to experience them. We remain confident in our plan to fundamentally reengineer the business and reposition our company for its return to growth. 2015 continues to be a pivotal year as we launch a portfolio of growth initiatives and invest to develop new revenue streams including through key acquisitions, and continue our disciplined capital allocation strategy.”     

Here are the highlights and lowlights

The lowlights:

• Revenue is down 6% from this same time last year from $820 million to $773 million
• Ad revenue is down 9% from this same time last year to $420 million
• Print and other ad revenue is down a massive 11%
• Digital ad revenue is up a modest %4 from the year-earlier quarter to $77 million
• The company welcomed 108.3 million multiplatform unique visitors during June 2015 in the U.S., up 32% since June 2014
• Circulation related revenue is down a tiny 2% to $254 million
• Subscription revenue slid 3% to $166 million
• Newsstand revenue slid down just 1% to $82 million
• Revenue from marketing services provided to outside clients and events, licensing and branded book publishing is down 2% to $99 million 
• Free cash flow is at $4 million compared to $64 million last year

The highlights:

• Production costs are down 8% from the previous year to $176 million
• Editorial costs are down 16%
• Other costs of revenues remained at a stand still
• Operating income improved
• Net income was $24 million compared with a Net loss of $32 million in the year-earlier

Here are current base salaries for Time Inc's top 4 executives as of March 2015:

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