CORRECTED - CORRECTED-UPDATE 1-Playboy posts wider-than-expected Q2 loss

Thu Aug 5, 2010 11:15am EDT

(Corrects first bullet point and paragraph 2 to show that the company posted a loss, not income)

* Q2 loss $0.16/shr vs est loss $0.15/shr

* Q2 rev $56 mln vs est. $58 mln

* Print rev falls 45 percent

* Shares down 3.5 percent

Aug 5 (Reuters) - Playboy Enterprises Inc PLA.N reported a wider-than-expected quarterly loss on Thursday as revenue at its print and digital segment continued to decline.

For the second quarter, net loss narrowed to $5.4 million, or 16 cents per share, from $8.7 million, or 26 cents per share, a year ago.

The adult entertainment company, which is being wooed by both founder Hugh Hefner and rival Penthouse magazine-owner FriendFinder Networks, saw revenue fall 10 percent to $56 million.

Analysts were expecting a loss of 15 cents a share on sales of $58 million, according to Thomson Reuters I/B/E/S.

Revenue at the print and digital segment fell 45 percent to $20.9 million. The company expects this segment to return to "modest profitability in the second half of 2010."

Licensing revenue rose 24 percent to $12.4 million during the quarter. The company has struck licensing deals with clothing makers, casinos and clubs to counter the diminishing returns of the print advertising business.

Earlier this week, the company said its board had formed a special committee to examine a bid by Hefner to take the company private.

After Hefner proposed to acquire Playboy for $5.50 a share, the owner of Penthouse magazine offered to pay $6.25 a share for the company.

Shares of Playboy dropped more than 3 percent in trading before the bell. They had closed at $5.39 Wednesday on the New York Stock Exchange. (Reporting by Mansi Dutta in Bangalore; Editing by Saumyadeb Chakrabarty)