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Circulation revenue, which accounts for nearly 30 percent of
Time's total revenue, fell 12.3 percent to $207 million in the
second quarter ended June 30.
Advertising revenue also dipped about 12 percent to $374
million, driven by declines in both print and digital
advertising.
New York-based Time has struggled to boost magazine
subscriptions and advertising revenue as more people move online
for their news and entertainment and advertisers shift away from
print media to digital platforms such as Google and Facebook.
"We believe our advertising revenues were negatively impacted by
the public speculation about the ownership of the company and
the trailing effect of the disruption from the reorganization of
our advertising sales force," the company said in a statement.
Time, under pressure from investors to explore a sale, in April
failed to sell itself after disagreements with potential buyer
Meredith Corp <MDP.N> over price.
Time also announced a cost-cutting plan on Tuesday, targeting
adjusted operating income before depreciation and amortization
of at least $500 million to $600 million in the next three to
four years.
The company has already undertaken restructuring measures,
including the elimination of 300 jobs or 4 percent of its
workforce in June.
Time reported a loss of $44 million, or 44 cents per share in
the second quarter, compared with a profit of $18 million, or 79
cents per share, a year earlier.
Excluding items, the company earned 13 cents per share, edging
past analysts' average estimate of 11 cents, according to
Thomson Reuters I/B/E/S.
Revenue fell 9.7 percent to $694 million, missing analysts'
expectations of $703.5 million.
(Reporting by Laharee Chatterjee in Bengaluru; Editing by Sai
Sachin Ravikumar)
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