Time Inc (TIME), the publisher of Sports Illustrated, Fortune and Time magazine, reported better-than-expected quarterly profit and revenue Thursday as cost cutting improved margins and digital revenue increased.
The company also announced a share buyback of up to $300 million.
Time took a $952 million goodwill impairment charge in the third quarter, due to the fall in its share price during the quarter and trends in advertising and circulation revenue.
As the print industry continues to decline, Time, like many of its peers, has resorted to slashing costs, tapping revenue sources with higher margins and beefing up its digital offerings.
To that end, Time Inc made two acquisitions last month: UK-based ICHF Events to boost its events business, and women’s lifestyle website HelloGiggles to increase its digital presence.
The company’s total revenue fell 5.8 percent to $773 million in the third quarter ended Sept. 30 as print advertisement sales continued to decline.
Digital advertising revenue rose 22 percent to $79 million.
The magazine publisher reported a net loss of $913 million, or $8.30 per share, compared with a profit $48 million, or 44 cents per share, a year earlier, reflecting the goodwill impairment charge.
On an adjusted basis, it earned 32 cents per share.
Analysts on average were expecting a profit of 27 cents per share on revenue of $769.3 million, according to Thomson Reuters I/B/E/S.
Production, editorial and other costs fell 3.7 percent to $310 million in the quarter.