Gemstar Returns to Profitability
Gemstar-TV Guide International Inc., publisher of TV Guide magazine, swung to a profit in the first quarter despite continuing losses in its publishing division.
The company, which also licenses searchable program guide technology to cable and satellite TV companies and TV makers, reported net income for the three months ended March 31 of $8.6 million, or 2 cents a share, compared with a loss of $3.7 million, or 1 cent, for the same period last year.
Revenue dropped to $144 million from $164 million a year earlier.
The results beat expectations of analysts who had been looking for earnings of 1 cent a share, according to Thomson Financial.
The company reported increased advertising and subscription revenue from its TV Guide channel and a 20% jump in revenue from licensing its interactive program guide.
The company said wagering on its TVG Network, a gambling service, also increased.
The revenue gains were offset by a 46% decrease in revenue in its publishing segment.
Shares of L.A.-based Gemstar rose 9 cents, or 2.7%, to $3.40 before its earnings were released.
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