Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Time Inc in talks to sell assets; warns on third-quarter ad revenue softness

Published 22/09/2017, 13:02
© Reuters. A supporter holds up a copy of Time Magazine with the cover headline "How Trump Won" during Trump's speech at a veteran's rally in Des Moines

(Reuters) - Time Inc (N:TIME) said on Friday it was looking to sell several assets, including Time Inc UK, and warned it experienced more-than-anticipated softness in both print and advertising revenue during the current quarter.

The publisher, which said in April that it would not sell itself, last month announced a fresh cost-cutting programme, targeting $400 million (£295.20 million) in spending cuts.

The assets identified for sale include Time Customer Service and a majority stake in the Essence magazine, the company said in a regulatory filing on Friday.

The company estimated that the assets marked for divestiture represent about $488 million, or 17 percent of total revenues for the 12-months ended June 30.

A sale may be announced as early as the fourth quarter, the company said.

The New York-based publisher of Sports Illustrated, People and namesake Time said it experienced softness in both print and advertising revenue during the current quarter relative to the forecast issued during the second-quarter earnings call.

Time Inc, which reported a 17 percent fall in second quarter print and other advertising revenues, had said it expected sequential improvement in the third quarter ending Sept. 30.

The company's magazine circulation revenue fell 12 percent in the second quarter ended June 30 and its advertising revenue dipped about 12 percent, as more readers and advertisers shift to digital platforms.

The company said on Friday that it expected its cost savings and efficiency initiatives to offset the advertising softness.

Separately, the company said it received a subpoena from the U.S. Securities and Exchange Commission requiring it to provide documents relating to certain goodwill and asset impairments and some restructuring and severance costs.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.