Time Inc. reports financial results for Q4 and year ending 31 Dec 2016
Time Inc.’s digital advertising revenue exceeded $500 US million in 2016, increasing 55 per cent year-on-year.
Time Inc. president and CEO Rich Battista said, “We are pleased with our progress and achievements during the quarter and our execution against our plan. In 2017, we are well positioned to accelerate our growth across digital and other media. Time Inc. is a unique platform in today’s dynamic media environment. We combine world-renowned content and iconic brands at massive scale with best-in-class targeting, measurement and data capabilities, giving us a tremendous value proposition for both consumers and advertisers. In December, Time Inc. broke into the top ten for the first time in U.S. multi-platform unique digital audience according to comScore. We reached nearly 60 per cent of the total US adult digital audience. In 2016, our digital video experienced explosive growth, up nearly 150 per cent year-on-year to an all-time high for video starts at 4.6 billion.”
Fourth quarter and full year results
Revenues decreased $10 US million or 1 per cent in the fourth quarter of 2016 from the year-earlier quarter to $867 US million. The stronger US dollar relative to the British pound had a $22 US million adverse impact on revenues for the quarter ended December 31, 2016.
For the full year 2016, revenues decreased $27 US million or 1 per cent versus the prior year to $3.08 US billion, primarily reflecting declines in print and other advertising revenues and circulation revenues, partially offset by growth in digital advertising revenues primarily driven by acquisitions.
Advertising revenues increased $25 US million or 5 per cent in the fourth quarter of 2016 from the year-earlier quarter to $509 US million.
For the full year 2016, advertising revenues increased $57 million or 3 per cent from the prior year to $1.71 US billion, reflecting an increase in digital advertising revenues, primarily resulting from the benefit of the Viant acquisition and, to a lesser extent, growth in digital advertising revenues relating to social media platforms and programmatic sales. Partially offsetting these increases was a decrease in print and other advertising revenues attributable to fewer advertising pages sold, primarily resulting from the continuing trend of advertisers shifting advertising spending from print to other media, and lower average price per page of advertising sold.
Circulation revenues decreased $31 million or 11 per cent in the fourth quarter of 2016 from the year-earlier quarter to $247 US million.
For the full year 2016, circulation revenues decreased $99 US million or 9 per cent from the prior year to $944 US million, primarily due to the continued shift in consumer preferences from print to digital media, which resulted in lower domestic Subscription revenues and a decline in both international and domestic Newsstand revenues.
Other revenues, which include marketing and support services provided to third parties, branded book publishing, events and licensing, decreased $4 US million or 3 per cent in the fourth quarter of 2016 from the year-earlier quarter to $111 US million.
For the full year 2016, Other revenues increased $15 US million or 4 per cent from the prior year to $420 US million, primarily driven by the benefit of acquisitions, partially offset by a decline in branded book publishing.
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Time Inc. is a FIPP member.
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