Playboy Enterprises (NYSE:PLA) reported its fourth-quarter and full-year results yesterday. How did Mr. Hefner's fantasy universe fare? Let's have a peek inside the financial world of bunnies and centerfolds.

For the fourth quarter, revenues increased 1.6% to $91 million. Operating income declined 46% to $7.3 million. Net income decreased 68% to $4.6 million ($0.46 per diluted share) against $14.5 million ($0.43 per diluted share) in the year-ago quarter.

For the full year, revenues increased 2.7% to $338.2 million. Operating income saw no change, coming in at $30.9 million. Net income, on a GAAP basis, showed a loss of $0.7 million, or $0.02 per diluted share; this was driven by a charge relating to the retirement of debt. If that is backed out, then net income for 2005 becomes $18.6 million ($0.56 per diluted share); in 2004, Playboy had net income of $9.6 million ($0.30 per diluted share).

That 94% jump in net income on a non-GAAP basis is pretty sweet, and it balances out the lackluster fourth quarter. Looking at the results of the individual operating segments, we see that the story for Playboy has essentially remained the same -- i.e., the publishing division continues to struggle with waning popularity while the other businesses pull the majority of the weight.

The entertainment operations increased its profit base by 24%, taking in $41 million for the year. Licensing's performance went up over 50% to $16.1 million, benefited by a stellar round of international sales. Publishing unfortunately saw an operating loss this time around of $6.5 million, a figure which is almost equal to the profit brought in by the segment last year.

Playboy seems to be accepting the fact that the flagship magazine refuses to be a team player for shareholders, but I hope the company isn't giving up on it entirely. The publishing brand is still an important key to the overall equity inherent in this iconic business, and I think it can eventually be turned around. Perhaps some tough editorial decisions should be made to update the periodical's appeal so that it may competently compete with the likes of Maxim and Stuff.

One of the best pieces of news in the release is the guidance. The company is looking for earnings growth for all of 2006 to fall between 20% and 25% -- and that includes stock compensation charges. That is definitely sexy. The market liked what it heard, sending the stock up over 4.5% yesterday.

I remain a long-term bull on Playboy -- sex will sell forever, and this is a major brand in the playground. Admittedly, I am concerned about the continued deterioration in the publishing operations; let's hope consumers become interested once again in the magazine by accessing the digital version. The other operating segments are doing well and should continue to do so in the future, making buys on pullbacks a compelling case. Perform your own due diligence, as always.

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Fool contributor Steven Mallas owns none of the companies mentioned. He enjoys the Girls Next Door series on E! and still wants to be Hugh Hefner when he grows up. The Fool has a disclosure policy.