Time Inc. reaffirms FY17 adjusted OIBDA view
CEO Rich Battista said, "I am pleased with our Q2 Adjusted OIBDA of $88M, which was roughly flat year-over-year. Our revenues continued to be impacted by disruption through the first half of 2017, as we said on our last call. Despite that revenue disruption, we executed in a highly disciplined way, which enabled us to beat Adjusted OIBDA expectations. The Q3 represents an important turning point for the Company as we are seeing strong momentum and sequential improvement of year-over-year trends for total advertising revenues. Today, we are reaffirming our 2017 Adjusted OIBDA outlook. On our last earnings call, we outlined aggressive actions to reduce costs, expand margins, rationalize our portfolio and extend our brands into new growth revenue streams. We've been moving with speed and, most significantly, we are announcing today, a strategic transformation program based on a thorough review of Time Inc.'s business. Through this review, we have greater confidence in our path to accelerate the optimization of costs and revenue growth drivers. We have already targeted more than $400M of run-rate cost savings, with the majority of initiatives expected to be implemented over the course of the next 18 months. We plan to use a portion of these savings to invest in our future in key growth areas including native and branded content, video, data and targeting, paid products and services, and brand extensions. With this program, we expect to realize significant cost savings and reinvest in our future, and we see a path to a minimum range of $500M-$600M of Adjusted OIBDA within the next three to four years."