Sluggish Box Office Drags Down LodgeNet6/20/2004 8:00 PM Eastern
LodgeNet shares dipped 15% ($3.02 each) between June 10 and June 16 after it lowered its revenue guidance for the second quarter as a result of weak box-office titles.
LodgeNet said it expected revenue to be between $65 million and $67 million for the second quarter (down from previous projections of $66 million to $69 million) and said its net losses for the year should widen. LodgeNet now expects a loss of $1.47 to $1.28 per share for 2004. It previously expected losses of between $1.51 and $1.13 a share.
In a statement, LodgeNet president Scott Petersen said revenue from box office titles continues to be soft, with fewer blockbusters available in its second-quarter window, compared to last year. “While the outlook for Hollywood movie content is expected to be promising starting in the August or September timeframe, the near-term outlook for titles appears to continue the relative lackluster lineup we have experienced since the beginning of the year.” LodgeNet provides in-room pay-per-view movies, cable TV and broadband content to the hospitality industry.