TULSA, Okla. (AP) -- TV Guide Inc. reported a 94 percent drop in
third quarter profits today but emphasized a 34 percent boost in
The Tulsa-based company, known best by the magazine of TV
listings, reported net income of $1.3 million compared with $21
million for the same period a year ago. Earnings per share dropped
96 percent to $.01 in the third quarter.
The company said earnings per share were affected by the
issuance of additional shares of common stock on March 1 to
complete the acquisition of TV Guide Magazine and the amortization
of intangible assets tied to that acquisition.
Earnings also were affected by a one-time gain last year
resulting from the addition of Turner Vision's C-band business to
the company's Superstar/Netlink Group, the company said.
TV Guide reported consolidated operating income before
depreciation and amortization of $52.9 million, up 34 percent from
last year's $39.5 million. Revenues increased 90 percent from
$159.4 million in 1998 to $302.6 for the same quarter this year.
"We are very pleased with our operating results given the
significant investment we are making in TV Games, Interactive,
International and Online," said Peter C. Boylan III, president and
chief operating officer.
"Our TV Guide Interactive product continues to gain significant
new subscribers and our alignment of TV Guide Online with America
Online will drive significant additional traffic," he said.
The 1999 results include the operating results of TV Guide
Magazine, which generated $154.4 million in the third quarter.
A stock deal announced earlier this month calls for the sale of
TV Guide to Gemstar International Group Ltd. for $8.6 billion. The
new company will be called TV Guide International Inc. and will be
based in Pasadena.
The deal is expected to be complete by the second half of next