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Gemstar-TV Guide Q1 Revenue Rises 18.4%

5/06/2004 10:33:00 AM Eastern

Los Angeles — A $2 million advertising increase for the TV Guide Channel and increased subscriber and licensing revenue at TV Guide Interactive of $3 million were among factors that helped the cable and satellite segment at Gemstar-TV Guide International boost first quarter revenue by 18.4 percent, compared to last year.

In addition, the TV Games sector of the segment enjoyed $2 million in year-on-year increased wagering and licensing revenue.

Overall cable/satellite segment revenue climbed to $41.1 million in the three-month period, ended March 31, up from $35.6 million in the year-ago period.

Gemstar-TV Guide, which offers interactive program guide services and products, reported adjusted earnings before interest, taxes, depreciation and amortization for its cable and satellite segment rose to $14.9 million in the first quarter, up from $10.8 million in the prior-year’s first three months. The increase was due to a $6.5 million increase in revenue, offset primarily by increases in TV Guide Channel marketing, sales and promotional expenses of $2.2 million.

The consumer-electronics licensing segment at Gemstar-TV Guide boasted a 61.5 percent increase in revenue during the first quarter, reaching $54.7 million, compared with $33.9 million in the same quarter in 2003.

The increase was due primarily to the company’s recognition of $19.4 million in one-time revenue from certain CE manufacturers. Increases in recurring revenue from Guide Plus+ of $3.9 million were offset by declines in recurring revenue from VCR Plus+ of $3.1 million.

Gemstar-TV Guide recorded consolidated revenue of $195.2 million in the first quarter, compared with $178.4 million year-over-year. In the first quarter of 2004, the company received non-recurring payments from certain CE manufacturers and recognized revenue of $19.4 million.

Consolidated operating income for the first quarter reached $26.6 million, compared with an operating loss of $86.4 million in the same quarter a year ago. The first quarter of 2004 included charges of $8.8 million and one-time income of $19.4 million. The year-ago three months included charges of $95.3 million.

The company reduced its net loss in the first quarter to $39.8 million, down from a net loss of $45.4 million in the same period last year.

Operating income for the current year is expected to range between $20 million and $50 million, which includes stock compensation and various expenses totaling $40 million.

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