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Aug 5 Time Inc, the largest magazine
publisher in the United States, reported a fall in quarterly
revenue, hurt by a decline in subscription revenue and newsstand
sales, and cut its full-year revenue forecast.
The publisher of Sports Illustrated, Time magazine and
People is facing steadily declining circulation and advertising
revenue - like Meredith Corp and News Corp - as
consumers shift to reading on smartphones and tablets.
This is Time's first earnings report following its spinoff
from Time Warner Inc. Time publishes more than 90 titles
and operates 45 websites, and gets more than half of its revenue
The company cut its full-year revenue forecast to
$3.30-$3.37 billion from $3.35-$3.42 billion, citing a payment
default by its second-largest wholesaler, the relocation of its
headquarters and sale of Mexican publishing unit Grupo
Analysts on average were expecting revenue of $3.35 billion,
according to Thomson Reuters I/B/E/S.
Time posted a loss of $32 million, or 30 cents per share,
for the second quarter ended June 30, compared with a profit of
$75 million, or 69 cents per share, a year earlier.
On an adjusted basis, the company earned 30 cents per share.
Revenue fell 1.6 percent to $820 million. Subscription
revenue fell 2 percent, while newsstand sales fell 13 percent.
Advertising revenue rose about 3 percent.
Analysts expected an adjusted profit of 16 cents per share
on revenue of $821.3 million.
The company's shares closed at $24.31 on Monday. The stock
started trading publicly in June.
(Reporting by Soham Chatterjee in Bangalore; Editing by Savio