TVG: Wagers Up, Revenues Down

TVG: Wagers Up, Revenues Down
TVG: Handle up, revenue down in 2007.
The parent company of TVG Network reported the horse racing television channel realized a 10% increase in wagers processed for 2007, but saw overall revenues decline slightly for the year.

Gemstar-TV Guide International, which is in the process of being sold for $2.8 billion to media technology company Macrovision Corp., reported TVG processed $477.9 million in wagers in 2007, a 10% increase over 2006, and a record annual handle for the company.

Financial data for TVG and other entities owned by Gemstar were released Feb. 14 after the close of stock market trading. The company chose not to hold a conference call with analysts due to the pending sale to Macrovision, which is expected to close in April.

TVG revenues dropped 1% to $56.6 million last year, a total which represents about 9% of Gemstar’s consolidated revenue of $627.7 million. In a filing with the U.S. Securities and Exchange Commission, Gemstar blamed the drop in TVG revenue in part to a $1.6 million arbitration award the company won against in 2006, and to AmericaTab not renewing its license agreement in 2007 with the company.

Gemstar reported that TVG is now available in 29.1 million U.S. households – up 50% since the end of 2006 – and also in about 19 million international households including those in the United Kingdom, Ireland, the United Arab Emirates, and Saudi Arabia.

TVG's handle in the fourth quarter of 2007 was $122.3 million, a record for the quarter, and up 5.5% over $115.9 million recorded for the same period of 2006. Revenues in the quarter dropped 8.4% to $14.99 million.

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