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public.wsj.com
Dec 01,2000
Playboy Enterprises to Reorganize
Publishing Group to Stem Losses
A WSJ.com News Roundup
CHICAGO -- In an attempt to stimulate revenue growth and control costs, Playboy Enterprises Inc. said it is reorganizing its publishing group, moves that include the departures of the group's president and the publisher of Playboy magazine.
The reorganization involves combining the offices of president of the business group and publisher of Playboy magazine. That change will result in the departure of Alex Mironovich, president of the Publishing Group since 1999, and Gail Day, Playboy magazine publisher for the past year.
Playboy said Michael T. Carr, president and chief executive of Weider Publications Inc., will assume the titles of president of the Publishing Group, publisher of Playboy magazine and executive vice president of Playboy Enterprises effective Monday, Dec. 4. Mr. Carr had been a senior vice president of Playboy Enterprises in the late 1980s.
Christie Hefner, Playboy chairman and CEO, said the new organizational structure is intended to bring greater focus on revenue growth while reducing the group's overall cost structure. She said Mr. Mironovich agreed with the change but decided to pursue other publishing opportunities.
Mr. Carr "understands the unique relationship Playboy has with its readers and, with his strong sales and marketing experience, will be particularly focused on increasing revenues," Ms. Hefner said. "Michael also brings strong business and management skills to the job and will be equally attentive to the need to improve profitability and operating margins."
In the third quarter, Playboy's loss widened -- partly due to lower circulation revenue for Playboy magazine -- to $6.5 million, or 27 cents a share, from $1.1 million, or five cents a share, a year earlier. The company said the latest quarter included $4.2 million in nonoperating expenses for the sale of its Critics' Choice Video catalog and for the planned public offering. Revenue declined 25% to $77.9 million from $104.2 million.
At Weider Publications, Mr. Carr was responsible for six publications including Men's Fitness, Shape and Jump.
Separately, Playboy's online unit, Playboy.com, unveiled a strategic alliance late Friday with the Lycos Internet portal (see related article ).
Lycos is owned by Spanish telecommunications company Telefonica SA's Terra Lycos SA, a global Internet network created in October through the merger of Terra Networks and Lycos Inc. |
