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.
Time publishes more than 90 titles, including the business magazine Fortune, and operates 45 websites. The magazine unit has slashed its workforce in recent years to cut costs.
New York Times Co also projected a further decline in current-quarter advertising sales last week.
Time lowered its full-year revenue forecast to $3.27 billion-$3.30 billion from $3.30 billion-$3.37 billion.
The mid-point of the forecast range came in well below the average analyst estimate of $3.32 billion.
Time first cut its forecast in August, citing a payment default by its second-largest wholesaler and the sale of its Mexican publishing unit, Grupo Expansion.
Time, which gets more than half its revenue from advertising, said revenue from print ads fell about 1 percent in the third quarter ended Sept. 30, from a year earlier.
Total revenue rose to $821 million from $818 million.
Profit fell 29 percent to $48 million, or 44 cents per share. On an adjusted basis, the company earned 41 cents per share.
Analysts on average had expected a profit of 36 cents on revenue of $817.6 million, according to Thomson Reuters I/B/E/S.
The company's shares were down 8.3 percent at $21 early afternoon on the New York Stock Exchange.
