• February 19, 2003

Playboy Enterprises returned to the black in the fourth quarter of last year. After losing $5.1 million in the third quarter of 2001, Playboy posted a $100,000 operating profit in the three months ending December 31, 2002. Its profit would have been higher, had it not been for a restructuring charge of $6.6 million, related to its international TV operations. Even so, its net loss was $4 million, which was an improvement over a $11.7 million loss a year earlier. Playboy chairman/CEO Christie Hefner says the company brought its online division to breakeven last year, at the same time it returned to an operating profit for the rest of its businesses. “We expect operating income to nearly double in 2003,” said Hefner, pointing to projected double-digit growth for licensed merchandise. Its flagship Playboy magazine continues to struggle, with a 7% decline in ad revenues in the fourth quarter, compared to 2001. That capped off a miserable year for Playboy, which posted a 12% decline in advertising. Hefner remains optimistic about 2003, and the company forecasting its magazine division to be flat in 2003. According to the Publishers Information Bureau, Playboy’s ad pages were down 5% in January, although revenues were up 3%. It recently named a new editor and is in the process of shifting its operations from Chicago to New York. The Bunny may not be out of the woods yet, however. Playboy is expecting profits to drop in its adult TV division in 2003 .