PLBY continues to narrow losses: The first quarter saw a 20% drop in overall revenue to $28.3 million for PLBY Group. This was mostly due to the fact that two licensees in China were terminated and Playboy’s e-commerce activities shifted to a licensing arrangement.

Year-over-year, continuing operations’ direct-to-consumer revenue fell 10% to $18.7 million. The shift from an e-commerce platform to a licensing model at Playboy.com contributed to the loss, which was accompanied by a $3.5 million drop in income. Honey Birdette, on the other hand, brought in $18.7 million, an 8% rise from the previous year.

The principal reason for the 58% year-over-year fall in license revenue to $4.1 million was the expiration of two major agreements in China in late 2023. The management team is optimistic about the future because of the new license agreements.

Revenue from digital subscriptions and content increased by 16% to $5.5 million, with decreases in legacy media being offset by growth in revenue from creator platforms.

A reduction of $19.9 million compared to the same time last year brought the net loss from continuing operations down to $16.4 million. There was an improvement in total net loss as well, falling $21.2 million from the first quarter of 2023 to $16.4 million.

During his presentation, PLBY Group CEO Ben Kohn emphasized the firm’s success in cutting costs and simplifying its core business. Kohn highlighted a reduced net loss and adjusted EBITDA loss compared to the first quarter of 2023, despite sales problems in China and e-commerce.

Among the new brand licensing deals that PLBY Group inked in China was a substantial five-year deal with Guandong Duhan Industrial Co., Ltd., which is anticipated to start bringing in money in the second quarter of 2024. Finding new licenses for unlicensed product categories is the company’s current priority.

Honey Birdette continues to have strong financial results, with significant sales growth, better gross margins, and improved profitability for the second consecutive quarter. In order to free up resources for PLBY Group to focus on strategic goals like expanding the Playboy brand and paying down debt, Kohn has stated his intention to aggressively seek a new owner or partner for Honey Birdette. This will enable the brand to expand globally.