Los Angeles — A fourth-quarter increase in TV Guide Interactive licensing revenue and an increase in TV Guide Channel advertising revenue boosted revenue for the overall cable and satellite segment at Gemstar-TV Guide International, climbing 8.7 percent to $69.8 million from a year-ago $64.3 million.
For the fourth quarter, ended Dec. 31, adjusted interest, taxes, depreciation and amortization (EBITDA) in the cable/satellite business hit $26.7 million, up from $20.3 million year-on-year. The increase was primarily related to increased revenue at TV Guide Interactive.
The consumer electronics licensing segment at Gemstar reported flat revenue for the fourth quarter, reaching $22.2 million, down from $22.6 million. Revenue for the company’s VCR Plus+ business dropped $2 million.
Adjusted EBITDA for the CE licensing segment hit $8 million in the fourth quarter, up 88.9 percent from the $4.2 million reported in the prior year’s three months.
Consolidated Gemstar revenue slipped to $129.4 million in the fourth quarter, down from a year-ago $164.8 million.
Net income, due to a one-time gain from the sale of its SkyMall in-flight magazine sold late last year, reached $12.7 million in the fourth quarter, compared with $1.6 million in same three months in 2004. The company reported a loss from continuing operations in the quarter of $16.8 million, up from a loss of $3.8 million year-on-year, excluding one-time gains.
For the 12 months, the cable/satellite segment generated revenue of $271.8 million, a 17.7 percent jump over the $230.9 million reported a year earlier. The segment’s annual revenue, which accounted for 45 percent of Gemstar’s overall revenue, notched an increase mainly due to a 36.1 percent rise in TV Guide Interactive revenue — a $24.3 million increase — and to a 10.6 percent, or $9.9 million rise, in TV Guide Channel ad revenue.
Adjusted EBITDA for the cable/satellite business rose 10.7 percent, reaching $108.4 million from a year-ago $97.9 million.
In the full year, the CE licensing segment generated revenue of $94.5 million, down 19.6 year-on-year from $117.5 million. This total represented 15.6 percent of overall Gemstar business.
The licensing segment recorded full-year adjusted EBITDA of $40.2 million, down from $42.6 million in 2004.
Consolidated revenue for the 12 months decreased to $604.2 million, down from a year-ago $675.4 million. Revenue for both periods excluded those from the former SkyMall business, which was classified as a discontinued operation.
Net income for the 12 months reached $54.8 million, compared with a year-on-year loss of $94.5 million. Excluding one-time gains in 2005, the company reduced its loss to $35.7 million, from a loss of $104.5 million a year earlier.
Gemstar’s move into the black was positively affected by a $43.2 million pretax gain on the SkyMall sale, a $40.4 million income tax benefit and $15.5 million in net interest income.
The company reported income of $20.6 million from continuing operations, compared with a loss of $76 million in 2004.
In other Gemstar news, the company said Thomson veteran Thomas Carson has joined the company as president of TV Guide On Screen in North America. The company also reported it had realigned its CE and licensing group, centralizing its global sales, management and marketing strategy and making key senior management team hires and promotions.