Los Angeles — Subscriber, licensing and advertising sales pumped up third-quarter revenue 57.2 percent at the cable and satellite segment of interactive program guide services and products company Gemstar-TV Guide International. Segment revenue climbed to $61.5 million, an increase from the $39.1 million recorded a year-ago.
This revenue difference was due primarily to a 245.5 percent jump in subscriber, licensing and advertising revenue at TV Guide Interactive, or $15 million; a 19.7 percent rise in revenue at TV Guide Channel, or $4.4 million; and a 34.5 percent climb in wagering and licensing revenue at TVG Network, or $2.9 million.
Healthy quarterly momentum was reported for a number of Gemstar-TV Guide businesses, which made “solid operational progress” for the three months, ended Sept. 30. “We are pleased to report advertising revenue growth at TV Guide Channel, increased licensing and distribution revenues in our TV Guide Interactive business, and strong performance at TVG Network,” said Jeff Shell, CEO. “Our consumer electronics business continued to sign up new licensees for our onscreen IPG.”
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the cable and satellite segment increased to $30.5 million in the third quarter, up from $9.3 million year-on-year, due primarily to the increase in revenue. Specifically, adjusted EBITDA is defined as operating (loss) income, excluding stock compensation, depreciation, amortization and impairment of intangible assets.
The CE licensing segment at Gemstar-TV Guide reported lower third-quarter revenue, down 5.2 percent to $22.9 million from a year-ago $24.1 million. The decrease was due mainly to the discontinuance of revenue associated with direct broadcast systems and set-top box manufacturers, of $6.5 million, offset by a $4.5 million increase in revenue from the company’s consumer electronics IPG and VCR Plus+ businesses.
Adjusted EBITDA in the third quarter for the CE licensing segment was $2 million, a 68.6 percent drop from the $6.5 million reported in the prior-year quarter. The decrease was due primarily to increased legal expenses of $2.8 million.
For the nine months, cable and satellite segment revenue jumped 42.2 percent, hitting $166.7 million, up from $117.2 million in the same period last year. Adjusted EBITDA for the period more than doubled to $77.7 million, compared with a year-earlier $32.6 million.
In the CE licensing segment over the first nine months, revenue moved up 10.8 percent, reaching $98.6 million from a year-ago $89 million. Adjusted EBITDA for the segment in the period rose 10.9 percent to $38.4 million from a year-over-year $34.6 million.
Consolidated Gemstar-TV Guide third-quarter revenue came in at $175.1 million, compared with $165.1 million. Operating loss for the three months soared to $137.9 million from a loss of $33 million in 2003. The quarterly loss included charges of $147 million. The company reported a net loss of $98.3 million in the third quarter, compared with a net loss of $18.1 million in the same three months last year.
In the nine months, consolidated Gemstar-TV Guide revenue climbed to $549.4 million, up from $524.2 million through September of a year earlier. Operating loss for the nine months was reduced to $94.5 million from $155.6 million, while the net loss increased to $96.1 million from a year-ago $86 million.
