I'm guessing that sin isn't in, as far as this recession is concerned. Playboy Enterprises (NYSE: PLA) posted a larger fourth-quarter loss thanks to $157.2 million in restructuring costs and other one-time costs. In addition, weaker-than-expected revenue cut into the quarterly performance. PLA's net loss checked in at a sizable $4.37 per share, far larger than the loss of three cents per share a year ago. This most-recent loss rounds out a year when PLA posted a loss in each quarter. PLA's revenue fell to $69.8 million from $85.9 million a year ago, and it fell well short of the expected revenue of $73.7 million.Digging into specifics, PLA's Entertainment Group saw its profit increase $5 million, thanks to "improved profitability" in the domestic television business. That said, revenue in the unit fell 21%. PLA's licensing unit saw income decline 38% to $4.3 million (I guess there just isn't a great deal of demand for bunny earrings and t-shirts in a recession, imagine that).
A month ago, PLA announce job cuts, online and print operation consolidations, and a writedown as the throng of readers drops thanks to the recession. In fact, PLA cut 14% of its work force last year, including Hugh Hefner's daughter Christie, who resigned her position as CEO. Hugh continues in his role as the magazine's editor-in-chief.
Right now, a share of PLA will cost substantially less than a copy of the latest magazine, as the equity is languishing below the $2 level. I wouldn't look for a rally any time soon, as PLA's 10- and 20-week moving averages loom overhead - ready, willing, and able to provide resistance.
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