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Gemstar Reports Q4 Profit Surge

Mar 8, 2006  •  Post A Comment

Gemstar-TV Guide International said Wednesday that its fourth-quarter profit surged to $12.7 million, from a year-earlier figure of $1.6 million, as the company got a lift from a series of one-time gains, including a $43.2 million pre-tax gain on the sale of its SkyMall operation.

Revenue, however, fell to $129.4 million from a year-earlier $164.8 million, as declines in the company’s publishing operation offset gains in the company’s cable and satellite operations.

For the year, Gemstar swung to a profit of $54.8 million, versus a loss of $95.5 million, while revenue fell to $604.2 million in 2005 from $676.4 a year ago.

The profit figures reflect the pre-tax gain on the SkyMall sale and a $40.4 million income tax benefit and $15.5 million in net interest income on its investments.

Among the company’s operations, publishing reported that revenue fell to $37.3 million in the quarter, compared with a year-earlier $70.8 million as the division continued to struggle amid circulation and advertising declines at the flagship TV Guide publication. The magazine underwent a format change last summer in a bid to stop the bleeding.

Meanwhile, the company’s cable and satellite unit, which includes the program-guide business and the TV Guide cable channel, posted quarterly revenue of $69.8 million, versus $64.3 million a year ago, on higher advertising revenue and ratings.