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Analyst: Playboy Projects Strong ‘Club Jenna' DVD Sales

7 Nov, 2006 By: Erik Gruenwedel



A 41% surge in online revenues and increases in DVD sales, specifically from the recent acquisition of adult film star Jenna Jameson's Club Jenna brand, were not enough for Playboy Enterprises to halt a 65% drop in third quarter (ended Sept. 30) income to $1.1 million compared to $3.2 million during the same period last year.

Lower cable and satellite pay-per-view revenues for Playboy TV and related movie networks drove down entertainment income 18% to $5.8 million compared to $7.1 million last year.

Licensing rights helped spike total quarterly revenues 2% to $82.3 million compared to $80.9 million during the same period last year.

Analyst Robert Routh with Jeffries & Co. in New York, said sales of Club Jenna DVDs going forward should satiate consumer demand for edgier content while allowing Playboy to maintain a separate lifestyle brand.

He said Playboy hasn't broken down home video sales for years, which he said used to generate about $1.3 million (based on centerfold videos) and was largely considered immaterial to the bottom line financially.

“[Playboy is] hinting that the DVDs coming out are going to be significantly different than what they currently have,” said Routh. “Everybody knows who Jenna is and everybody knows who Playboy is. There really isn't a better brand to have. It does make sense.”

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