Analyst On Playboy: Buy the Bunny.(Playboy Enterprises Inc. experiences growth in earnings)(Brief article)

Multichannel News, November, 2006

By Staff Jefferies & Co. media analyst Robert Routh maintained his "buy" rating on Playboy Enterprises, after the adult content giant reported stronger than expected third-quarter earnings. Playboy reported net income of $1.1 million (3 cents per share) in the period, better than the loss the company had previously projected.

That growth was largely driven by global licensing and digital-media initiatives. Playboy still showed weakness in its domestic television unit -- mainly because of difficulties in transitioning from traditional pay-per-view to video on demand and poor marketing -- and in its publishing business. "Management is well aware of the problem areas and has been taking steps to fix them while focusing on the faster growing...

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