Time Inc. Plunges as Sales Forecast to Fall More Than EstimatedKelly Gilblom
Time Inc., the magazine publisher spun off of Time Warner Inc. last year, plunged in New York trading after its fourth-quarter results and 2015 forecast were worse than analysts expected.
The shares fell as much as 12 percent Thursday, the most since it was listed on the New York Stock Exchange following the June spinoff. As of 10:11 a.m. New York time, the stock was down 8.6 percent to $22.80.
The New York-based publisher of People and Sports Illustrated said fourth-quarter revenue fell 7.3 percent to $895 million, falling short of the $904 million analysts projected. Earnings excluding some items of 73 cents also missed the 77-cent average estimate. Time forecast a 3 percent to 6 percent drop in 2015 revenue, while analysts were expecting a decline of about 2 percent.
Time is trying to find new sources of revenue to help return to growth as many traditional media companies face declines in print readership and ad sales as customers move online. Chief Executive Officer Joe Ripp said the company will focus more on digital advertising and creating videos to increase sales.
“We are facing secular print headwinds,” Ripp said on an earnings call with analysts Thursday. “We continue to be highly confident in our transformation plan.”
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