Gemstar-TV Guide Q4 Interactive Sector Rises 19%
By Jeff Malester -- TWICE, 4/1/2002
Pasadena, Calif.— Interactive TV program guide Gemstar-TV Guide International reported pro forma revenue of $83.3 million in the fourth quarter for its technology and licensing sector, up 19 percent from $69.8 million in the same three months in 2000, excluding one-time revenue.
Earnings Before Interest, Taxes, Depreciation and Amortization (EBITDA) for the sector reached $59.7 million pro forma in the fourth quarter ended Dec. 31, up 35 percent from $44.3 million in the year-ago period, excluding one-time revenue.
Gemstar's technology and licensing sector is responsible for developing, licensing and protecting the company's VCR Plus+ system, interactive program guide (IPG) products, and services marketed under the GUIDE Plus+ and TV Guide Interactive brands.
Consolidated revenue for the fourth quarter came in at $346.4 million on a pro forma basis, compared with $358.1 million year over year. EBITDA on a pro forma basis climbed to $118.6 million in the fourth quarter, up from $112.3 million, excluding the amortization of goodwill.
Net loss for the fourth quarter was $210.2 million, up from $126.2 million in the same three months in 2000. This was due primarily to amortization of intangible assets recorded as a part of the acquisition of TV Guide in 2000, and one-time write-offs, the company said.
Gemstar, which said its IPG technology is now available in 15 million homes, will write down in the current quarter as much as $5 billion of the $8.6 billion in goodwill it had on its books as of Jan. 1. This will wipe out more than half of the $9.7 billion in assets the company had as of Dec. 31. Most of the goodwill had come from Gemstar's $14 billion purchase of TV Guide, it said.
For the 12 months, Gemstar's technology and licensing sector had revenue of $327 million, a 30 percent increase, compared with pro forma revenue of $251.8 million in 2000.
EBITDA in the sector for the 12 months was $229.2 million, an increase of 42 percent over the $161.3 million recorded on a pro forma basis for the previous year.
Consolidated pro forma revenue for the 12 months was relatively flat, reaching $1.38 billion, compared with $1.41 billion in 2000. Consolidated pro forma EBITDA increased 24 percent, to $449.4 million, up from $362.1 million the previous year. Net loss for the 12 months soared to $600 million, up from $185.8 million year over year.
