Macrovision Revenue Up, Posts Loss from TV Guide Sale10 Feb, 2009 By: Chris Tribbey
Digital entertainment technology company Macrovision saw revenue rise to $118.2 million during the fourth quarter of 2008 — up 15% from the same period in 2007 — but posted a nearly $210 million operating loss (compared to $9.2 million in profit in the fourth quarter of 2007), tied to write-downs from the impending sale of its TV Guide properties to Lionsgate.
Lionsgate announced Jan. 5 that it would buy TV Guide Network and TV Guide Online from Macrovision for $255 million.
Macrovision president and CEO Fred Amoroso said an increase in licensing by consumer electronics companies using Macrovision technology, as well as an increase in the number of people subscribing to digital television, helped Macrovision’s fourth quarter. In a conference call with investors Feb. 10, Amoroso added that the delay in the digital television transition from Feb. 17 to June 12 will also help Macrovision, in terms of sales of digital converter boxes and more pay-TV subscribers.
“We believe there is opportunity for further growth by increasing our penetration into [consumer electronics] devices, adding new licensees as well as benefiting from the increasing numbers of digital television subscribers,” Amoroso said. “I am also delighted that we have closed the sale of [TV Guide Network and TV Guide Online]. The proceeds from these divestitures will be used to pay down our term loan. We are now singularly focused on our core businesses.”
While Amoroso expressed some concern that rising levels of unemployment would negatively affect pay TV subscriber growth, he pointed to “the proliferation of Blu-ray players in the $200 range” using Macrovision BD Plus technology as a positive sign.
“We’re obviously pleased with the results … in what’s obviously a difficult economy,” he said.