Playboy posts wider-than-expected Q2 loss

Playboy Enterprises Inc 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 income fell 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% to $56 million.

Analysts were expecting a loss of 15 cents a share on sales of $58 million, according to Thomson Reuters IBES.

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

Licensing revenue rose 24% 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% in trading before the bell. They had closed at $5.39 yesterday on the New York Stock Exchange.