May 10 (Reuters) - Time Inc on Wednesday slashed its dividend in an effort to bolster its balance sheet and cut costs, and also reported a bigger-than-expected quarterly loss, as sales of print advertising plunged.
The move comes weeks after the publisher of Sports Illustrated and Fortune magazines decided it would not sell itself and said it would instead pursue its own strategic plan that included spending cuts.
The company also said it had hired an adviser to help assess costs and improve margins.
Time Inc lowered its quarterly dividend to 4 cents per share from 19 cents.
The company had $281 million in cash, cash equivalents and short-term investments and a credit facility of $497 million as of March 31.
Time Inc also said it appointed John Fahey non-executive chairman, and added Dan Rosensweig to its board of directors. Fahey is currently the board’s lead independent director.
Rosensweig is the chief executive of online textbook rental company Chegg Inc.
Time Inc said it would no longer provide a forecast for annual revenue.
The company said print advertising revenue, which makes up a third of total revenue, fell about 21 percent to $212 million in the first quarter ended March 31.
Net loss attributable to Time Inc widened to $28 million, or 29 cents per share in the first quarter ended March 31, from $10 million, or 10 cents per year, a year earlier.
Excluding one-time items, the company reported a loss of 18 cents per share.
Revenue fell to $636 million from $690 million.
Analysts were expecting revenue of $641.8 million and a loss of 15 cents per share, according to Thomson Reuters I/B/E/S. (Reporting by Narottam Medhora in Bengaluru; Editing by Sai Sachin Ravikumar)