Publications
Partners
New York - Time, the magazine company that is home to People, Sports Illustrated and Time, began trading on the New York Stock Exchange on Monday as print-based companies face serious hurdles.
Led by chief executive Joe Ripp, Time is spinning off from its parent Time Warner and will operate as a stand-alone public company no longer buffered by its lucrative cousins, pay-TV channel HBO or movie studio Warner Bros.
The move comes as magazines are beset by declining circulation and advertising revenue as consumers shift to reading on smartphones and tablets.
The magazine unit has been slashing jobs over the years - in 2013 it cut about 600 positions - a trend that will likely continue as Wall Street scrutinises costs.
The company employs approximately 7 800.
Time said revenue fell about 2% in 2013 to $3.35bn compared to the prior year.
Its adjusted operating income before depreciation and amortisation dropped 5% to $587m and its free cash flow declined 10% to $384m.
With that declining trend line, Time has taken on $1.4bn in debt partly to help fund a one-time dividend to Time Warner shareholders.
Time Warner shareholders received one share of Time stock for every eight shares of Time Warner stock.
Several media companies have split in recent years in order to separate print properties from faster-growing TV and cable properties.
News Corp separated its publishing division which includes newspapers such as The Wall Street Journal and Times of London, HarperCollins book publisher, and stakes in Australian pay-TV and online real estate companies.
Shares of News Corp, which split last July from its entertainment properties now known as 21st Century Fox, are up 28% over the last year.
Tribune also plans to cleave off its newspaper properties like the Los Angeles Times and the Chicago Tribune from its TV stations this year.
