Jefferies & Co. media analyst Robert Routh maintained his “buy” rating on Playboy Enterprises, after the adult content giant reported stronger than expected third-quarter earnings.
Playboy reported net income of $1.1 million (3 cents per share) in the period, better than the loss the company had previously projected. That growth was largely driven by global licensing and digital-media initiatives. Playboy still showed weakness in its domestic television unit — mainly because of difficulties in transitioning from traditional pay-per-view to video on demand and poor marketing — and in its publishing business.
“Management is well aware of the problem areas and has been taking steps to fix them while focusing on the faster growing profitable businesses. Still, this may take a little while,” Routh wrote.
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