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Paxson Communications Reports Q3 Loss

Nov 10, 2004  •  Post A Comment

Paxson Communications on Wednesday swung to a slightly wider loss in the third quarter, hurt by a series of one-time charges booked during the period.

The West Palm Beach, Fla.-based broadcaster posted a loss of $43.7 million, versus year-earlier red ink of $42.6 million. Revenue rose slightly to $65.9 million from $64.2 million.

The numbers come as Paxson nears the Nov. 13 deadline to redeem a stake held by NBC Universal. A year ago, NBCU informed Paxson of its plan to redeem the 32 percent stake, which is worth more than $500 million.

Paxson has maintained that it is not obligated to redeem the stake, in part because certain shareholders haven’t permitted such a payment to be made and because the company doesn’t have enough cash on hand to make such a payment.

The two companies are now locked in a legal tussle over the payment, and a ruling is expected sometime in early 2005.