Los Angeles – Gemstar-TV Guide International reported a 17.8 percent third quarter decrease in revenue for its cable and satellite segment, down to $81.6 million, from $99.4 million in the prior-year quarter.
Part of this decline was attributed to decreased revenue of $1.2 million at TV Guide Interactive, its on-screen program guide for digital cable.
The TV Guide Interactive revenue drop was due to a $2.1 million reduction in advertising revenue, offset by an increase in subscriber and licensing revenue of $900,000. TV Guide Interactive added 200,000 subscribers during the third quarter, ended Sept. 30. Total TV Guide Interactive subscribers at the end of the third quarter reached 11,035,000, up from 9,374,000 year over year.
For the three months, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) for the cable and satellite segment were $27.9 million, a drop of 33.4 percent from the $41.9 million reported in the third quarter of 2002.
The cable and satellite segment revenue for the nine months reached $254.6 million, down about 18 percent from the $309.4 million reported in the same period a year earlier.
Gemstar, which licenses technology for interactive program guides to cable television and electronics companies, reported $207.6 million in revenue for the third quarter, a decrease of 12.4 percent from the $236.9 million recorded in the same three months last year. The company recorded a net loss of $18.1 million for the quarter, compared with income of $3.9 million year over year.
For the nine months, Gemstar reduced its net loss to $86 million, from a loss of $5.1 billion the previous year, which was affected by an accounting change. Revenue for the nine months reached $661.6 million, down from $756.7 million year on year.
For the year, ending Dec. 31, Gemstar expects to report operating revenue of between $22 million and $47 million. The company also anticipates growth in its TV Guide Interactive business.
