NEW YORK -- Time Inc, which publishes Sports Illustrated, Time and People magazines, cut its full-year revenue forecast for the second time, hurt by falling circulation and weak print advertising.
Shares of Time, which Time Warner Inc spun off in June to focus on its more profitable entertainment business, fell as much as 9 percent on Tuesday.
Most publishers have been cutting costs and beefing up their digital services but the moves have so far failed to offset the effects of a relentless decline in print advertising amid falling circulation.
As well, advertising dollars are shifting to online media as more people get their news on smartphones and tablets.
"Supply of advertising online continues to grow and it's really a function of explosive growth in mobile and social media usage," FBR Capital Markets analyst William Bird said.
Time also forecast a mid- to high-single digit decline in percentage terms in total revenue for the current quarter, as well as a decline in advertising, subscription and newsstand revenues.
The holiday season, in particular, is more challenging for print publishers.
"We currently have a low level of visibility into late November and December when print bookings can exhibit high levels of volatility," Chief Executive Joe Ripp said on a conference call.
