The one-time charges of sin

They say that the adult entertainment industry is essentially recession-proof. They say that adult-oriented web sites are the only ones making money. Well, tell it to Rick’s Cabaret International, which is posting a $2.3 million loss for the year after taking a $2.5 million one-time goodwill charge.

The Houston-based operator of adult nightclubs and Web sites also reported lower revenues for the year as it continues to cut back on its unprofitable Internet activities in favor of running Internet auctions. It’s shifting because the auction business generates higher margins even though it has lower sales.

Rick’s owns seven adult-related auction Web sites and two others it classifies as online entertainment. The company is focusing heavily on the auction sites because they require low overhead, said Allan Priaulx, who manages Rick’s investor relations.

For example, on one of its sites, porn stars sell items of clothing they’ve used in their performances, props from their films and other personal items. The seller of the goods delivers the products.

Now don’t you wish you’d known about that before you’d done all your Christmas shopping?

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One Response to The one-time charges of sin

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