LodgeNet CEO Scott Petersen told CIBC Gaming, Lodging & Leisure C...
LodgeNet CEO Scott Petersen told CIBC Gaming, Lodging & Leisure Conference in N.Y. Tues. that his company still expected to report revenue of $58-$61 million, EBITDA of $19.5-$21 million and loss per share of 61-73? in its first quarter.…
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Company provides on-demand movies, music and Nintendo videogames to lodging industry. Petersen said: “Since introducing the industry’s only interactive digital platform that incorporates both a satellite distribution network and On-Screen Controls (e.g., pause, skip and save), we have executed long-term contracts with over 1,800 lodging properties having more than 340,000 rooms for the provision of our digital interactive TV services… It is generating per-room revenues that are 37% greater than our traditional analog platform -- a factor that will drive increasing revenue and cash flow for our company over the next several years. Today, we offer digital entertainment services in 30% of our room base. We expect that will grow to more than 55% by the end of 2004… During the year, we will be improving our interactive TV offering… We have launched a new sales strategy [that] will allow us to move away from the ‘one- size-fits-all’ approach… We will be releasing a new system configuration midyear that will reduce our per-room capital investment by 5 to 10%. Both factors should make the cost of installing an average new digital room comparable to the traditional tape-based systems we stopped installing 2 years ago, but with 37% greater revenue.”