Time Inc. said profit dropped in its latest quarter as the world's largest magazine publisher continues to invest in its transformation and beef up its digital platforms.

Though its earnings decline was steeper than expected, revenue topped expectations and the company offered an upbeat sales outlook for the year.

The publisher, whose covers also include People, Travel + Leisure and Fortune, spun off from its former parent Time Warner Inc. in 2014 in one of many moves by media giants to shed print arms.

Recently, Time said it would realign itself in an attempt to bolster sales from its largest marketing clients. As part of that push, the publisher on Thursday said it would acquire data-driven marketing firm Viant Technology Inc. for an undisclosed amount. Irvine, Calif.-based Viant operates several digital ad technology and media companies including Vindico and Myspace.

The move to broaden its digital operations comes as print sales continue to decline. In the latest quarter, Time said digital ad revenue rose 17% from a year earlier as the company saw more visitors to its platforms and growth in video sales. That increase offset a 6.6% decline in print ad sales and helped counter lower revenue from subscriptions and newsstands. Overall revenue slipped 2%.

Time booked a hefty amount of restructuring-related charges during the quarter, further pressuring its bottom line. Those costs jumped to $169 million from $28 million a year earlier, while Time's overhead costs rose 6.3% during the quarter.

In all, Time reported a profit of $17 million, or 15 cents a share, down from earnings of $145 million, or $1.32, a year earlier. Excluding restructuring and severance costs, among other items, Time earned 58 cents per share, up from 73 cents in the year-ago quarter.

Revenue declined to $877 million. Analysts projected 66 cents in adjusted per-share profit on $872.1 million in sales.

For the year, Time expects revenue to rise between 1% and 5% after having fallen 5% in 2015. The estimate translates to $3.13 billion to $3.25 billion, above the $2.99 billion analysts have anticipated.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

 

(END) Dow Jones Newswires

February 11, 2016 07:25 ET (12:25 GMT)

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