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The
publisher of Sports Illustrated and Fortune magazines said last
month it would pursue a strategic plan that included spending
cuts and focusing on its digital business.
The company's decision not to sell itself also ended speculation
about a potential merger with U.S. broadcasting and publishing
group Meredith Corp <MDP.N>.
Time Inc's shares have fallen 17.5 percent since it announced
the decision. The stock slipped 9.6 percent to $13.65 in trading
before the bell on Wednesday.
"The noise and relentless media speculation over the last 6
months around the potential change of ownership clearly was a
major distraction to our employees and advertisers and other
partners, and had an impact on Q1 results," Chief Executive
Richard Battista said on a post-earnings call with analysts.
Time Inc, like its peers in the publishing industry, has
struggled in recent years as advertisers increasingly move away
from print to digital media, which includes Google and Facebook.
The company said print advertising revenue, which makes up a
third of total revenue, fell about 21 percent to $212 million in
the first quarter ended March 31, while digital advertising
sales surged 32 percent to $119 million.
Total revenue dipped nearly 8 percent to $636 million, marking
the fourth straight quarter of decline. The company also said it
would no longer provide a forecast for annual revenue.
Net loss attributable to Time Inc widened to $28 million, or 29
cents per share in the first quarter ended March 31, from $10
million, or 10 cents per year, a year earlier.
Excluding one-time items, the company reported a loss of 18
cents per share, bigger than the 15 cents expected by analysts
on average, according to Thomson Reuters I/B/E/S.
Time Inc lowered its quarterly dividend to 4 cents per share
from 19 cents.
The company said it had hired an adviser to help assess costs.
Time also announced changes to its board of directors.
The company appointed John Fahey, currently the board's lead
independent director, as non-executive chairman.
Dan Rosensweig — the chief executive of online textbook rental
firm Chegg Inc <CHGG.N> — was named to Time Inc's board.
(Reporting by Narottam Medhora in Bengaluru; Editing by Sai
Sachin Ravikumar)
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