Time Inc – the publisher that owns British magazine group IPC Media – saw its revenue fall seven per cent in 2008, as it was hit by the plunging pound and the advertising slump.
Its full-year results, published this afternoon, show revenue down from $4.9bn in 2007 to $4.6bn in 2008 (£3.4bn to £3.2bn).
Overall, Time Inc’s operating profit was down 29 per cent, from $1.1bn to $779m (£758m to £538m).
Its adjusted profit was actually a $6.6bn loss (£4.6bn), due to a “$7.1bn non-cash impairment to reduce the carrying value of goodwill and intangible assets”.
The company said that subscription revenues were down, “reflecting mainly the negative impact of foreign exchange rates at IPC Media and lower domestic magazine subscription sales”.
In August, £1 was worth $1.95. Today, it is worth $1.44.
Time Inc said that its advertising revenue fell by $279m (£193m), a 10 per cent slump, and that subscriptions fell by $28m (£19m), a two per cent decrease.
In the fourth quarter alone, advertising fell 20 per cent, the company reported.
Online revenue increased by $57m (£39m) in the year, helped by People.com and CNNMoney.com.
Jeff Bewkes, chairman of Time Warner, Time Inc’s parent group, said: ‘We’re making progress at Time Warner toward our goals of becoming a more content-focused company and delivering increasing returns to our stockholders.”
Time Warner’s operating loss was $16.6bn (£11.5bn), due to a $24.2bn write-down. In 2007, it made an $8.9bn profit (£6.2bn).