Playboy reports narrower loss on increase in licensing revenue

Playboy Enterprises Inc., the publisher that has agreed to go private in a buyout led by founder Hugh M. Hefner, reported a fourth-quarter loss that narrowed on increasing revenue from licensing.

The net loss was $14.7 million, or 43 cents a share, compared with a loss of $27.8 million, or 83 cents, a year earlier, Chicago-based Playboy said in a statement today. The loss in the latest quarter included $12.5 million for a legal settlement and last year's loss had $28.6 million in impairment and restructuring charges, the company said.

Revenue declined 9.2 percent to $55 million. Licensing revenue rose to $14.2 million from $8.7 million a year earlier.

“Our 2010 results demonstrate the viability of our brand management strategy,” said Scott Flanders, chief executive officer. “Our licensing business recorded its most profitable full year and single quarter ever.”

Playboy said last month it would go private in a transaction that would pay shareholders $6.15 for Class A and Class B shares. The buyout will give Playboy the resources and flexibility to rebuild its brand and expand its business around the world, Hefner said at the time.

Playboy Class B fell 2 cents to $6.12 at 4 p.m. in New York Stock Exchange trading. The stock has increased 17 percent this year.r