No money in porn mags? - GoFuckYourself.com

Marcus · 04-04-2002, 06:23 PM

http://story.news.yahoo.com/news?tmp...ut_of_business

Auditor of Penthouse's Publisher Warns Company May Go Out of Business
Fri Mar 29, 5:56 PM ET

Dow Jones Newswires

WASHINGTON -- The auditor for General Media Inc., publisher of Penthouse and other magazines, said there is substantial doubt about the company's ability to continue as a going concern.

The New York -based company also disclosed it cut 26% of its work force, or 39 employees, in February.

In the firm's annual report, filed late Thursday with the Securities and Exchange Commission (news - web sites), Grant Thornton LLP said General Media's current liabilities exceeded current assets by $22.3 million as of Dec. 31 .

The auditor added the company is unlikely to generate sufficient funds from operations to make all its interest payments due this year. General Media also said it doesn't believe it can generate sufficient funds to make the required interest payments this year -- about $7 million on series C notes and $5.8 million in amortization payments.

As a result, the company is negotiating with the holders of the notes for a reduction in General Media's debt-service payments. If the company doesn't make the payments, the notes' trustee could assume control of the company and substantially all of its assets, including its registered trademarks.

General Media said it posted a 2001 net loss of $9.9 million, compared with year-earlier net income of $3.8 million. Revenue fell 14% to $65.4 million from $76 million.

The company has experienced a steady decline in the number of newsstand copies of Penthouse magazine and its affiliate publications sold over the past several years. Penthouse circulation averaged 652,000 copies last year, down from a recent high of one million in 1998 and 779,000 in 2000. Newsstand revenue for Penthouse and the affiliated publications fell 15% in 2001 to $33.8 million.

General Media attributed the decline to the change in social climate toward men's magazines, together with advances in technology -- including the proliferation of retail video outlets and the increased market share of cable television and the Internet.

The company said it sees newsstand sales improving slightly during 2002 because of special marketing strategies it is using aimed at developing new outlets for its magazines and rewarding growth in sales by distributors, as well as the economic recovery expected during the second half of the year.

General Media added it plans to return to profitability and improve cash flow by cutting production costs, promotion expenses and costs for other selling, general and administrative expenses.

spacedog · 04-04-2002, 06:26 PM

Maybe they should hand out free teasers with ads to upsell to the paid mag..

kane · 04-05-2002, 01:06 AM

it's not a big suprise. Even Playboy is having all kinds of money troubles. I think people used to buy playboy and penthouse and those types of mags you can get at 7-11 because it wasn't that "dirty" if it's sold at a store and they don't risk being seen at a porn store. But now they can get everything they want online. No use it buying a mag that you'll have to hide from the wife/girlfriend when you can just bookmark your favorite TGP

FlyingIguana · 04-05-2002, 01:09 AM

makes u wonder what these companies have been thinking over the past 7 years.

Tipsy · 04-05-2002, 01:02 PM

It's sorta been said. Who wants to look at Playboy or Penthouse any more?

There's still good money in mags - just go ask Paul Raymond.

Gary · 04-05-2002, 01:07 PM

I havent looked at playboy since i got on the internet. They need to spice up the mags a little. Get those sexy chicks and have goats take a shit on them while they're getting fucked with a baseball bat.

At least then it might interest me a little.

Paul Markham · 04-05-2002, 01:43 PM

The major magazines have had falling numbers for the last ten years. But this has slowed right down over the last two.

This is not due to the Internet, in fact some are now making serious money on the net. It's due to the cost of printing coming down and the number of magazines available increasing.

Most magazines are total profit, the costs are paid for by the telephone ads.

There is still a lot of money in magazines, Penthouse and Playboy are just out of date styles that had to change but did not.

Fletch XXX · 04-05-2002, 02:08 PM

damn it, I replied to this thread....

http://gofuckyourself.com/showthread...threadid=55789

too much pot... anyway...

I have all the movies on this list...

http://www.hotcherrygirl.com/movies.htm and trust me, if you had this movie list, you would not need a site, or a mag ever again.... mmmm.... Gauge...

Okay, off to get beer so I can fuck up more posts.

04-04-2002, 06:23 PM	#1
Marcus Confirmed User Industry Role: Join Date: Jul 2001 Posts: 3,472	No money in porn mags? http://story.news.yahoo.com/news?tmp...ut_of_business Auditor of Penthouse's Publisher Warns Company May Go Out of Business Fri Mar 29, 5:56 PM ET Dow Jones Newswires WASHINGTON -- The auditor for General Media Inc., publisher of Penthouse and other magazines, said there is substantial doubt about the company's ability to continue as a going concern. The New York -based company also disclosed it cut 26% of its work force, or 39 employees, in February. In the firm's annual report, filed late Thursday with the Securities and Exchange Commission (news - web sites), Grant Thornton LLP said General Media's current liabilities exceeded current assets by $22.3 million as of Dec. 31 . The auditor added the company is unlikely to generate sufficient funds from operations to make all its interest payments due this year. General Media also said it doesn't believe it can generate sufficient funds to make the required interest payments this year -- about $7 million on series C notes and $5.8 million in amortization payments. As a result, the company is negotiating with the holders of the notes for a reduction in General Media's debt-service payments. If the company doesn't make the payments, the notes' trustee could assume control of the company and substantially all of its assets, including its registered trademarks. General Media said it posted a 2001 net loss of $9.9 million, compared with year-earlier net income of $3.8 million. Revenue fell 14% to $65.4 million from $76 million. The company has experienced a steady decline in the number of newsstand copies of Penthouse magazine and its affiliate publications sold over the past several years. Penthouse circulation averaged 652,000 copies last year, down from a recent high of one million in 1998 and 779,000 in 2000. Newsstand revenue for Penthouse and the affiliated publications fell 15% in 2001 to $33.8 million. General Media attributed the decline to the change in social climate toward men's magazines, together with advances in technology -- including the proliferation of retail video outlets and the increased market share of cable television and the Internet. The company said it sees newsstand sales improving slightly during 2002 because of special marketing strategies it is using aimed at developing new outlets for its magazines and rewarding growth in sales by distributors, as well as the economic recovery expected during the second half of the year. General Media added it plans to return to profitability and improve cash flow by cutting production costs, promotion expenses and costs for other selling, general and administrative expenses.

04-05-2002, 01:02 PM	#5
Tipsy Confirmed User Join Date: Jul 2001 Location: See sig Posts: 6,989	It's sorta been said. Who wants to look at Playboy or Penthouse any more? There's still good money in mags - just go ask Paul Raymond. __________________ Ignorance is never bliss.

04-05-2002, 01:07 PM	#6
Gary Confirmed User Join Date: Aug 2001 Location: Kimmykims couch Posts: 6,110	I havent looked at playboy since i got on the internet. They need to spice up the mags a little. Get those sexy chicks and have goats take a shit on them while they're getting fucked with a baseball bat. At least then it might interest me a little. __________________ Up to 35$ per join...!

04-05-2002, 01:43 PM	#7
Paul Markham Too old to care Industry Role: Join Date: Jun 2001 Location: On the sofa, watching TV or doing my jigsaws. Posts: 52,943	The major magazines have had falling numbers for the last ten years. But this has slowed right down over the last two. This is not due to the Internet, in fact some are now making serious money on the net. It's due to the cost of printing coming down and the number of magazines available increasing. Most magazines are total profit, the costs are paid for by the telephone ads. There is still a lot of money in magazines, Penthouse and Playboy are just out of date styles that had to change but did not. __________________ Blowout deal. 880 videos, 2,400 image sets, plus many RAW videos. $500. PM me for a deal. Skype Paulmarkham70

04-05-2002, 02:08 PM	#8
Fletch XXX GFY HALL OF FAME DAMMIT!!! Join Date: Jan 2002 Location: that 504 Posts: 60,840	damn it, I replied to this thread.... http://gofuckyourself.com/showthread...threadid=55789 too much pot... anyway... I have all the movies on this list... http://www.hotcherrygirl.com/movies.htm and trust me, if you had this movie list, you would not need a site, or a mag ever again.... mmmm.... Gauge... Okay, off to get beer so I can fuck up more posts. __________________ Want an Android App for your tube, membership, or free site? Need banners or promo material? Hit us up (ICQ Fletch: 148841377) or email me fletchxxx at gmail.com - recent work - About me

04-04-2002, 06:26 PM	#2
spacedog Yes that IS me. Bitch. Industry Role: Join Date: Nov 2001 Posts: 14,149	Maybe they should hand out free teasers with ads to upsell to the paid mag..

04-05-2002, 01:06 AM	#3
kane Too lazy to set a custom title Join Date: Aug 2001 Location: portland, OR Posts: 20,684	it's not a big suprise. Even Playboy is having all kinds of money troubles. I think people used to buy playboy and penthouse and those types of mags you can get at 7-11 because it wasn't that "dirty" if it's sold at a store and they don't risk being seen at a porn store. But now they can get everything they want online. No use it buying a mag that you'll have to hide from the wife/girlfriend when you can just bookmark your favorite TGP

04-05-2002, 01:09 AM	#4
FlyingIguana aspiring banker Join Date: Mar 2002 Location: toronto Posts: 10,870	makes u wonder what these companies have been thinking over the past 7 years.