Playboy Enterprises Inc. had a net loss of $11.7 million during fourth-quarter 2001, compared with a net loss of just over $29 million in fourth-quarter 2000.
Revenue slipped from $79.5 million to just under $78 million. Most of the sales decline came from Playboy magazine, which generated $27.3 million during the quarter compared to $34 million a year ago.
For all of 2001, the Chicago-based entertainment marketer generated $291.2 million, down from $307.7 million in 2000. It trimmed its net loss from $47.6 million to $33.5 million. The quarter and the year ended Dec. 31.
Park of the revenue falloff was due to the sale of the Collectors’ Choice Music catalog last year. Collectors’ Choice Music was the final piece of its independent catalog operations. Operating results for its flagship catalog, The Playboy Store, are considered part of its online group.
Playboy attributed part of its net loss to investments in its online business. During fourth-quarter 2001, Playboy Online had $7.7 million in revenue, up from $6.5 million a year ago. The division had a $5.1 million loss, an improvement from the $7.2 million loss seen a year ago.
For the year, the online division generated $27.5 million, up from $25.3 million in 2000. But it took a loss of $453,000, compared to generating $54,000 in operating income during 2000.
Separately, the company announced that it will establish a storefront on eBay, which will sell proprietary Playboy apparel, autographed memorabilia and collectibles and jewelry. Eventually, its offerings will include unique items such as invitations to major events at the Playboy Mansion.
The eBay Playboy Marketplace should be operational by March, and will be run by Randy Nicolau, Playboy's senior vice president, marketing and e-commerce.
