In the wake of its June 6 separation from Time Warner, Time Inc. released its report for the second quarter – its first quarter as a standalone company since 1990 – showing a net loss of $32 million. These earnings are down by half from last year’s net income of $75 million.
With losses to be expected in its first independent quarter, the report might actually be good news, according to Bloomberg, in that the magazine giant outperformed the estimates compiled by analysts.
“It’s an indication that they’re making the right moves,” Macquarie Capital analyst Tim Nollen told Bloomberg. “Investors will have to keep in mind that a lot of the things that brought numbers down a lot were transitory items.” The owner of Time, Sports Illustrated, People, Fortune, and Entertainment Weekly was more successful than expected at a time when print publications are struggling with universal declines in advertising and circulation.
Chairman and CEO Joe Ripp spearheaded the spinoff from Time-Warner because the “primary focus of management and investors” went elsewhere. Future plans for Time Inc. include tightening the belt and finding an executive to specialize in mergers and acquisitions. “We had a solid second quarter, we are making real progress, and we are executing,” Ripp told the Wall Street Journal. “However, we still face secular challenges, and we are in the early innings of driving change.”