Playboy Enterprises Inc., Chicago, announced earnings before interest, depreciation and amortization (EBITDA) for the second quarter ended June 30, 2000 of $5.6 million, a drop from the $9.3 million last year. The difference was credited to increased investment in Playboy Online.
The Online revenue more than doubled in the quarter, going from $2.8 million to $6.4 million because of increases in e-commerce, advertising, and subscriptions. E-commerce more than tripled, with advertising and sponsorship revenues increasing 20%. Subscription revenue rose 55%.
The Catalog Group reported EBITDA of $100,000, half of last year’s $200,000. Revenue declined 34% to $9.4 million because Playboy and Spice direct marketing revenues were reconfigured into Playboy Online’s business as well as planned lowered circulation of its music and video catalogs.
The company also signed a letter of intent to sell its Critics Choice Video catalog (and related CCVideo.com Web site) to Infinity Resources Inc. Infinity will also handle fulfillment for Playboy Store.com and Cyberspice.com.
The completion of the deal will complete Playboy’s divestiture of its catalog business.
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