Time Inc. released the results of it 2016 Q4 earnings report today, with revenue figures that fell short of expectations.
Time’s total revenue in Q4 was $867 million, compared to an expected $872.7 million for Q4.
The decrease in revenue for the last three months of 2016 amounted to $10 million, or a 1 percent drop from Q4 in 2015. Time attributed the drop to changes in the exchange rate between the U.S. dollar and British pound that made the dollar stronger against the pound, which the company reported had a “$22 million adverse impact on Revenues for the quarter.” Total revenue for the year was $3.08 billion, representing a 1 percent decrease from the previous year.
Advertising revenue was up 5 percent in the fourth quarter, representing a $25 million increase, and up 3 percent in 2016 overall. The increase in ad revenue was all on the digital side, which experienced a 63 percent increase in Q4. In Q4, digital advertising accounted for just under a third of total advertising revenue. The growth in digital ad revenue for 2016 was attributed to Time’s purchase of ad tech company/MySpace owner Viant early in 2016, and, on a smaller scale, social and programmatic ad revenue.
Print and other ad revenue was down 10 percent in Q4, attributed to a decrease in both pages sold and average price per page.
Circulation revenue was down by 11 percent in Q4 and 9 percent for all of 2016.
Time Inc.’s fortunes are being looked at with particular attention given recent rumors about a potential sale, with Meredith as buyer.
Whatever may or may not be happening with that, Time will be focusing, naturally, on digital and video growth this year.