Time Inc. admits it’s looking to sell several assets

Time Inc. finally came clean on an expanded list of assets it’s seeking to sell.

The publishing giant will try to unload its 700-person Time Customer Service unit and its UK division, it revealed in a regulatory filing on Friday.

The Post had reported as far back as July 27 that the two assets were among the properties to be sold to offset a drop in print ad revenue.

Time had previously fingered three titles — Golf, Coastal Living and Sunset — as being on the block, in addition to a majority stake in Essence.

“The company estimates that these assets represent, in the aggregate, approximately $488 million, or 17 percent, of its total revenues for the twelve-month period ended June 30,” it said in the filing.

A sale may be announced as early as the fourth quarter, the company said.

While confirming the larger group of assets to be sold, the publisher of Sports Illustrated, People and its namesake newsweekly warned it’s experiencing weaker-than-expected print and advertising revenue during the current quarter.

In April, Time, after receiving an unsolicited offer for the company and entertaining other indications of interest, said it would not sell itself.

In the same filing, the company reaffirmed its adjusted operating income before depreciation and amortization, or OIBDA, forecast for the full year to be in the range of $400 million to $414 million.

Time Inc. reported a 17 percent decline in second- quarter print and other advertising revenue. The company, led by Chief Executive Rich Battista, said it expected improvement in the third quarter.

The company’s print circulation revenue decreased 12 percent in the second quarter and its advertising revenue was off about 12 percent, as more readers and advertisers shifted to digital platforms — which command lower rates.

The company said in the Friday regulatory filing that it expected its cost savings and other initiatives to offset the softness in advertising.

Last month, Time took the wraps off a fresh cost-cutting program, targeting $400 million in savings.

Separately, the company said it received a subpoena from the Securities and Exchange Commission requiring it to provide documents relating to certain goodwill and asset impairments and some restructuring and severance costs.

Time Inc. shares closed Friday at $12.55, unchanged. They are off 30 percent this year.

 

Read the full article from the Source…

Leave a Reply

Your email address will not be published. Required fields are marked *