Time Inc. (TIME) reported earnings of $0.41 a share in the third quarter of 2014, down from $0.67 at this time last year. The company grew slightly in revenue to $821 million compared to $818 million last year. TIME’s net income dipped to $48 million, down from $68 million the year before.
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The company, which spun off from Time Warner Inc. in June 2014, beat Wall Street’s expectations of $0.36 a share and $817.56 billion in revenue. Advertising revenue was flat at $428 million; the same as last year. Print and other advertising revenues were down 1 percent from last year to $363 million. Digital advertising revenue went up 5 percent to $65 million. Year over year operating profit is down by one third and the company slightly lowered its full year revenue forecasts to $3,270,000; down from $3,299,000.
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On Oct. 29, TIME Inc.’s Board of Directors approved an initial quarterly dividend of $0.19 per share. Its CEO credits strong digital growth in the face of declining print revenue.
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“Our third quarter Adjusted OIBDA performance was better than expected given strong growth of digital advertising revenues and benefits of our efficiency initiatives,” Time Inc.’s Chairman and CEO, Joe Ripp, said. “However, as a result of the weakening of print advertising trends late in the quarter, we are taking steps to counter the revenue headwinds. We remain committed to managing the business for stable margins and cash flows. We remain confident in our plans to drive large scale transformation as we extend our powerful brands across platforms, work to develop adjacent business opportunities, and move toward a leaner and more nimble operating model.”