Exhibit 99.1
[PLAYBOY LOGO]
FOR IMMEDIATE RELEASE Investor Contact:
Martha Lindeman
312-373-2430
PLAYBOY ENTERPRISES PROJECTS IMPROVED 2005 RESULTS
Revenues, Operating and Net Income Expected to Grow
CHICAGO, Monday, December 6, 2004 - Playboy Enterprises, Inc. (PEI) (NYSE:
PLA, PLAA) projected that in 2005 the company will report earnings per share
(EPS), excluding the potential impact of recognizing stock option expense, of
$0.40 to $0.45, significantly higher than anticipated 2004 EPS results.
Revenues are expected to increase approximately 6% in 2005.
Speaking at the Credit Suisse First Boston Media and Telecom Week
conference today in New York, PEI Chairman and Chief Executive Officer
Christie Hefner said that the expected gains will be driven primarily by
continued double-digit increases in revenues and profitability in the
company's higher margin international television, online subscription and
e-commerce, and licensing businesses. The company will also benefit from its
2004 debt reduction efforts, which will reduce non-operating expense going
forward.
"During 2004, we expect to return to net profitability as well as
benefit from the completion of a number of important deals and the reduction
in our interest and dividend expense," Hefner said. "We end this year in a
stronger position financially than we've enjoyed in nearly a decade.
"Looking ahead, we see substantial opportunities to drive earnings
growth," Hefner said. "It's clear that the Playboy brand continues to enjoy
unprecedented and growing popularity around the world and we are monetizing
that in more ways and in more markets than ever before. As a part of that,
changing technologies are enabling us to create new platforms for distribution
of our content, which we are well positioned to do as a result of the
consolidation of our television, DVD, online and wireless businesses. We
believe that these dynamics will result in higher revenues, operating and net
income in 2005."
The company noted that stock option expense could total approximately
$3.5 million, or $0.10 per share in 2005.
A live audio webcast of management's presentation at the CSFB
conference will be available at www.peiinvestor.com on Monday, December 6,
2004 beginning at 2:50 PM (EST).
* * * *
Playboy Enterprises is a brand-driven, international multimedia entertainment
company that publishes editions of Playboy magazine around the world; operates
Playboy and Spice television networks and distributes programming via home
video and DVD globally; licenses the Playboy and Spice trademarks
internationally for a range of consumer products and services; and operates a
network of Websites including Playboy.com, a leading men's lifestyle and
entertainment Web site.
* * * *
FORWARD-LOOKING STATEMENTS
This release contains "forward-looking statements," as to expectations,
beliefs, plans, objectives and future financial performance, and assumptions
underlying or concerning the foregoing. We use words such as "may," "will,"
"would," "could," "should," "believes," "estimates," "projects," "potential,"
"expects," "plans," "anticipates," "intends," "continues" and other similar
terminology. These forward-looking statements involve known and unknown risks,
uncertainties and other factors, which could cause our actual results,
performance or outcomes to differ materially from those expressed or implied
in the forward-looking statements. The following are some of the important
factors that could cause our actual results, performance or outcomes to differ
materially from those discussed in the forward-looking statements:
(1) Foreign, national, state and local government regulation, actions or
initiatives, including:
(a) attempts to limit or otherwise regulate the sale, distribution
or transmission of adult-oriented materials, including print,
television, including video, and online materials,
(b) limitations on the advertisement of tobacco, alcohol and other
products which are important sources of advertising revenue for
us, or
(c) substantive changes in postal regulations or rates which could
increase our postage and distribution costs;
(2) Risks associated with our foreign operations, including market acceptance
and demand for our products and the products of our licensees;
(3) Our ability to manage the risk associated with our exposure to foreign
currency exchange rate fluctuations;
(4) Changes in general economic conditions, consumer spending habits, viewing
patterns, fashion trends or the retail sales environment which, in each
case, could reduce demand for our programming and products and impact our
advertising revenues;
(5) Our ability to protect our trademarks, copyrights and other intellectual
property; (6) Risks as a distributor of media content, including our
becoming subject to claims for defamation,
invasion of privacy, negligence, copyright, patent or trademark
infringement, and other claims based on the nature and content of the
materials we distribute;
(7) The risk our outstanding litigation could result in settlements or
judgments which are material to us; (8) Dilution from any potential
issuance of additional common or convertible preferred stock in
connection with financings or acquisition activities;
(9) Competition for advertisers from other publications, media or online
providers or any decrease in spending by advertisers, either generally or
with respect to the adult male market;
(10) Competition in the television, men's magazine, Internet and product
licensing markets; (11) Attempts by consumers or private advocacy groups
to exclude our programming or other products from
distribution;
(12) Our television and Internet businesses' reliance on third parties for
technology and distribution, and any changes in that technology and/or
unforeseen delays in its implementation which might affect our plans and
assumptions;
(13) Risks associated with losing access to transponders and competition for
transponders and channel space; (14) The impact of industry
consolidation, any decline in our access to, and acceptance by, DTH
and/or cable
systems and the possible resulting deterioration in the terms,
cancellation of fee arrangements or pressure on margin splits with
operators of these systems;
(15) Risks that we may not realize the expected increased sales and profits
and other benefits from acquisitions and the restructuring of our
international TV joint ventures;
(16) Any charges or costs we incur in connection with restructuring measures
we may take in the future; (17) Risks associated with the financial
condition of Claxson Interactive Group Inc., our Playboy TV-Latin
America, LLC joint venture partner;
(18) Increases in paper or printing costs;
(19) Effects of the national consolidation of the single-copy magazine
distribution system; and
(20) Uncertainty of the viability of our primarily subscription- and
e-commerce-based Internet model.