NEW YORK - Playboy posted financial losses in its second quarter report to shareholders this morning.
Net revenue fell by 14 percent to $73.4 million., and the company's stock dropped by six cents per share. Wall Street analysts had predicted a five-cent increase of a projected $81.7 million net.
Playboy's worldwide licensing revenues have gone up as the company focuses on exploiting its legendary brand, but those earnings are not enough to offset the losses in other areas.
Other publicly traded adult companies, including Playboy's broadcast competitor New Frontier, Private Media Group and the online arm of Rick's Cabaret are "struggling to grow," according to The Motley Fool. Analysts blame the glut of free online porn as the main problem affecting the market.
Playboy plans to relaunch its flagship Web site playboy.com later this year. Earlier this month, the company hired former 'Maxim' editor-in-chief Jimmy Jellinek to lead its digital media division under exec Tom Hagopian.