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Playboy.com pulls IPO
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November 14, 2000: 10:14 a.m. ET
Offering of men's entertainment site withdrawn due to poor market
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NEW YORK (CNNfn) - Playboy Enterprises Inc. Tuesday pulled the initial public offering of its online venture, Playboy.com, the latest withdrawal of a high-profile IPO.
Chicago-based Playboy Enterprises (PLA: Research, Estimates) cited poor market conditions, but plans to proceed with the issue once market conditions improve, the company said.
For Playboy.com, a unit of Playboy Enterprises, third-quarter revenue doubled to $6.6 million from $3.1 million a year earlier. For the year to date, Playboy.com posted an $18 million loss compared with a $5.6 million loss for the prior year. Revenue for the Web site was $18.8 million compared with $8.1 a year earlier.
Playboy Enterprises, which owns a minority stake in the Web site, will continue to seek various financing alternatives for Playboy.com, an entertainment site for men, including equity investments from strategic investors.
 Playboy Enterprises also reported third-quarter results Tuesday, posting a net loss of $6.5 million, or 27 cents a diluted share, compared with a net loss of $1.1 million, or 5 cents a diluted share, a year ago. Earnings tracker First Call's expectations were unavailable.
Playboy Enterprises' losses include $4.2 million of non-operating expenses related to the sale of its Critics' Choice Video catalog and the IPO of Playboy.com. Profits before interest, taxes and other charges fell 85 percent to $4.6 million for the quarter
The publishing group, which includes Playboy magazine, reported that earnings before interest, taxes and other charges, nearly doubled to $1.3 million from $700,000 in 1999. Revenue for the publishing group was nearly unchanged at $33.5 million. Advertising revenue rose 17 percent for Playboy magazine while total revenue, which also includes subscriptions, was flat at $26 million.
Playboy said it expects fourth-quarter ad revenue to be flat.
Playboy Enterprises shares fell 31 cents to $12.06 in early trading Tuesday. 
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