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Hotels, clubs drive Playboy.(Playboy Enterprises Inc.)(Brief Article)

Multichannel News, December, 2005

UBS Warburg analyst Lucas Binder initiated coverage on Playboy Enterprises Inc. with a "buy" rating and a $17.50 price target, noting that increased licensing deals and the company's efforts to leverage the Playboy brand should lead to improved profitability in 2006 and beyond. In a report, Binder said Playboy has been effectively leveraging its brand across all of its business platforms over the past 12 months, particularly stores and location-based entertainment.

By mid-2006, Playboy is expected to launch Playboy at The Palms, in conjunction with the Palms Hotel & Casino in Las Vegas, and a Playboy Club in Shanghai. That pair is expected to generate $5 million in licensing revenue alone, or about 19% of total 2005 licensing revenue, Binder wrote. ...

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