LodgeNet Reports Substantial 1st-Quarter Revenue Increase
LodgeNet, which has been a target of family-values groups for offering adult entertainment, offers media and connectivity solutions for hospitality, healthcare and other guest-based businesses, including movie services in 1.9 million hotel rooms in 9,000 properties and broadband in more than 225,000 hotel rooms..
The company also reported a net loss of $13.0 million for the first quarter of 2008, which included $5.9 million of expenses related to the 2007 acquisitions of competing companies On Command and StayOnline.
"Our first quarter results put us on pace to achieve the full year guidance we issued in February," LodgeNet President and CEO Scott C. Petersen said. "Following our strategic acquisitions in 2007 in the areas of interactive television, broadband Internet and advertising media, we now offer our customers an expanded suite of services and solutions that connect, inform and entertain guests and patients. This strategic transformation has placed us in a unique position to broaden our customer relationships and drive meaningful new revenues and cash flows."
The reported growth was in hotel services revenue, which includes revenue from hotels for television programming and broadband Internet service and support, which increased 93.1 percent over the first quarter last year. Guest entertainment — movies, games, music, time-shifted television, Internet access through the television, and sports programming — declined by 2.9 percent in the first quarter. The company attributed the decline in guest entertainment revenues to a 3.2 percent decline in hotel occupancy.
The company did not report specific revenues from adult entertainment.
The complete report is available from the LodgeNet website.