Playboy Enterprises (NYSE:PLA) continued its turnaround streak today, and teased the market with promises for a 150% jump in 2003 operating income. The adult-themed media giant shaved its losses in the second quarter, with its online and publishing divisions again returning strong results.

Total revenues grew 8% to $76 million from the prior year's $70.6 million. Playboy lost $0.9 million, or $0.04 a share. That's a 70% improvement from 2002's Q2 loss of $3.1 million, or $0.12 a share. Operating income was much higher, coming in at $5.5 million versus $2.2 million.

Playboy's biggest division, entertainment (which includes its TV programming and DVD/video sales), reported a 10% jump in revenues, but a drop in operating income to $6.5 million from $8.1 million. The company's DVD and video business tanked, with revenues plummeting 62%. Playboy's domestic and international TV revenues, which accounted for the bulk of the entertainment division, were both better, though.

The company's publishing unit is its second-largest division and its biggest headache over the past few years. Stagnating revenues and declining circulation led to a new editor-in-chief for Playboy's namesake magazine, as the company struggled to make itself relevant in its 50th year of operation.

The division appears to be solidly on the mend, despite continuing advertising weakness. Revenues rose 7% to $28.8 million. And Playboy publishing generated an operating profit of $1.4 million in the quarter compared to a year-ago loss of nearly a million dollars.

Second-quarter circulation revenues improved 10%, thanks in part to a very popular May Playboy issue featuring wrestling personality Torrie Wilson. Ad revenues dropped 4%, as expected. Playboy still predicts that ad revenues will rise for the full year, and its commemorative 50th anniversary edition (to be published in December) should help.

Playboy's online division also performed well this quarter, marking its second quarter of operating profits. It produced $104,000 in operating income versus a $2.9 million loss the prior year. Online revenues grew, as well, up 7.5% to $8.3 million. Because of higher prices and more members, online subscription revenues jumped 58% to $4.2 million.

Playboy is moving in the right direction here. It's expected to post a net loss of $0.04 for 2003, substantially improving upon its 2002 $0.44 loss. The online division is steadily growing and making money, and its flagship publication seems to be turning around, too. Playboy is finally rewarding patient shareholders with results worthy of its legacy and brand name.