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Gemstar’s Q2 Profits Hurt by Weak TV Guide Magazine

Aug 4, 2005  •  Post A Comment

Gemstar-TV Guide International said Thursday that it swung to a second-quarter loss, hurt by continued weakness at its flagship TV Guide magazine.

The Los Angeles-based company, which is controlled by Rupert Murdoch’s News Corp., posted a loss of $5.1 million, compared with a year-earlier profit of $42 million. The 2004 figure included $33.4 million in one-time gains associated with a legal settlement and a tax benefit.

Revenue dipped slightly to $177 million from a year-earlier $178.5 million.

The main engine behind the results was persistent weakness at the company’s publishing unit, which was weighed down primarily by advertising and circulation declines at TV Guide.

Those results helped to offset gains made in the company’s cable and satellite segment, which provides interactive program guides, and by the consumer electronics division, which licenses program guide technology to consumer-electronics manufacturers.