IF there’s one silver lining for AOL, it’s that Time Warner’s fabled publishing business, Time, Inc., is doing even worse. Ads are down 30% (30%!). Even subscription revenue dropped 16%. And EBITDA fell 92% to a paltry $12 million.
Looking at these numbers, it’s no surprise rival magazine publisher Conde Nast is reeling.
Revenues decreased 23% ($239 million) to $806 million, due to declines of 30% ($167 million) in Advertising revenues, 16% ($58 million) in Subscription revenues and 18% ($21 million) in Other revenues. The decline in Advertising revenues reflected decreases in print magazine revenues, including the impact of unfavorable foreign exchange rates at IPC, as well as lower custom publishing revenues and declines in online revenues. Subscription revenues decreased, due primarily to the negative impact of foreign exchange rates at IPC and lower magazine newsstand sales, resulting in part from wholesaler disruptions, and lower subscription sales. Other revenues decreased, resulting mainly from declines at Synapse and Southern Living At Home, which is held for sale, offset partly by the impact of the acquisition of QSP, Inc.
Operating Income before Depreciation and Amortization declined 92% ($133 million) to $12 million, due mainly to the decrease in revenues and an $18 million increase in bad debt reserves related to a newsstand wholesaler, as well as higher pension expense, offset in part by lower overhead expenses, including cost savings related to the reorganization in the fourth quarter of 2008. The prior year quarter also included restructuring charges of $10 million.
Operating Loss of $32 million reflected a decline of $125 million compared to the year-ago quarter’s Operating Income of $93 million, resulting primarily from the decline in Operating Income before Depreciation and Amortization.