Time Inc in talks to sell assets

NEW YORK: Time Inc
said on Friday it was
looking to sell several assets, including Time Inc
UK, and warned it experienced more-than-anticipated softness in both print and advertising revenue during the current quarter.

The publisher, which said in April that it would not sell itself, said
assets identified for sale include Time Customer
Service and a majority
stake in the Essence magazine.

The assets marked for divestitures represent about $488 million, or 17 percent of total revenue for the 12-months ended June 30, the company said.

A sale may be announced as early as the fourth
quarter, the company said
in a regulatory filing on Friday. 

The New York-based publisher of Sports
Illustrated, People and namesake Time said it
experienced softness
in both print and advertising revenue during the
current quarter relative to the forecast issued during the second-quarter earnings call.

However, the company re-affirmed its adjusted operating income before depreciation and amortization (OIBDA) forecast for the full-year to be in the range of $400 million to $414 million.

Time Inc, which
reported a 17 percent fall in second quarter print and other advertising revenues, had said it expected sequential improvement in the third quarter ending Sept. 30.

The company’s magazine circulation revenue fell 12 percent in the second
quarter ended June 30 and its advertising
revenue dipped about 12 percent, as more readers and advertisers shift to digital platforms.

The company said on Friday that it expected its cost savings and other initiatives to offset the softness in advertising.

The publisher last month announced a fresh cost-cutting program, targeting $400 million in savings.

Separately, the company said it received a subpoena from the United States Securities and Exchange Commission requiring it to provide documents relating to certain goodwill and asset impairments and some restructuring and severance costs.