Time Inc. Falls Below Earnings and Revenues Expectations

Media company delivers $0.73 per share on $895 million in revenue

Time Inc.
Time Inc.

Time Inc. (TIME) unveiled its fourth quarter 2014 financials on Thursday morning before the stock markets opened, reporting earnings of $0.73 per share (EPS) on $895 million in revenue. Diluted EPS came in at $1.32 per share as compared to $0.61 per share in 2013’s fourth quarter.

The performance fell below Wall Street’s projections. According to TheStreet, the consensus estimate predicted Q4 earnings would be around $0.78 per share on revenue of $904 million. Zack’s had forecasted the same EPS on $902 million.

Revenue fell 7 percent, or $71 million year-over-year from $966 in 2013’s fourth quarter. Time Inc. cited acquisitions and losses as part of the dip in performance: its acquisition of Cozi Inc; the loss of a partnership with CNNMoney.com in Q2 2014, and sale of Mexico-based  Grupo Editorial Expansión in Q3 2014.

The company was down across-the-board, dipping $44 million in print revenues, or 8 percent year-over-year from $496 million; down $46 million, or 10 percent year-over-year from $409 million, and down $25 million in circulation, or 8 percent year-over-year from $288 million. Digital ad subscription was up 2 percent, or $2 million year-over-year.

The company announced plans to distribute a quarterly dividend of $0.19 per share  on March 13, 2015.

CEO Joe Ripp depicted the performance as part of a larger growth process. Time Inc. was spun off of its parent company Time Warner last June.

“Over the past year, we’ve been fundamentally re-engineering the business, and re-positioning our company for its return to growth. We have made significant progress toward the transformation of the cost structure, and successfully protected our margins and cash flows. We accelerated the growth and monetization of our digital audiences. We also became a stand-alone public company for the first time since January 1990. As we look forward, we expect 2015 to be a pivotal year as we launch a portfolio of growth initiatives. One of the unique sources of upside for Time Inc. is the ability to extend our powerful brands into new revenue streams. We are very excited by the opportunities provided by our brands.”

The company will kick off its earnings call at 8:30amET.

Comments