Playboy Enterprises of Chicago reported a profit...

Playboy Enterprises of Chicago reported a profit for the first quarter of 1987, despite declining revenue, compared to the same quarter in 1986, when the firm posted a loss. The increase is attributable primarily to an improvement in the operating performance of its Video Group and an increase in the company’s non-operating income. Included in non-operating income is a $1-million gain on the sale of the company’s mortgage position, held since 1981, in the former Playboy Plaza Hotel in Miami Beach, Fla. Revenue of the Video Group increased nearly 30% principally due to the home-video business and The Playboy Channel. Home Video revenue and earnings were higher due to an increase in the number of home-video releases in the first quarter of fiscal 1987 as compared to the prior year.