Playboy Provides Programming Inventory, New Information on DirecTV Suit

Oct 22, 2010 4:00 PM PST
CHICAGO — Playboy Enterprises said it expects that the results for the third quarter ending Sept. 30 will include a non-cash write-down, which is primarily related to television programming inventory.

This charge, according to preliminary estimates, is likely to be in excess of $20 million.

The company said that the quarter's results are expected to include bad debt expense of approximately $1 million and domestic TV contra revenues of approximately $3 million, which reflect DirecTV’s failure to make payments for TV programming it receives from the company.

DirecTV is withholding payments in conjunction with a lawsuit filed in California Superior Court alleging that Playboy was in breach of its contract.

Playboy believes that DirecTV is wrongfully withholding payment and that its allegations are unfounded and premature.

Playboy is defending the lawsuit and said that it will release full third-quarter earnings on Nov. 9.

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