LodgeNet shares plunge after hours on 1Q loss

LodgeNet widens 1st-quarter loss, shares plunge after hours

Associated Press

SIOUX FALLS, S.D. (AP) -- LodgeNet Interactive Corp.'s shares plunged in after-hours trading Tuesday after it posted a wider first-quarter loss.

The company, which provides video, Internet and advertising services to the lodging and health care sectors, has struggled with its core business and is in the process of finding new sources of revenue.

LodgeNet reported a net loss attributable to shareholders of $3.5 million, or 14 cents per share, for the quarter versus a loss of $2.3 million, or 9 cents per share, last year. Its revenue fell 12 percent to $94.7 million.

Its shares fell nearly 20 percent in after-hours trading on the news.

LodgeNet's revenue from its hospitality and advertising service business fell 15 percent to $91.8 million. Its health care industry revenue slid 53 percent to $2.9 million.

It suffered from fewer rooms using its services during the period. LodgeNet is in the process of upgrading some of its products, such as the move to high-definition services, and expanding its offerings, such as adding cloud-connected interactive television, to boost future revenue.

The company also said it is still conducting a strategic review of its guest entertainment business, looking at a number of options to improve that business ranging from price hikes to adding streaming Internet options.

LodgeNet said it expects full-year results anywhere from a loss of 10 cents per share to a profit of 10 cents per share. It forecast revenue of $405 million to $420 million for the year. In 2011 the company posted a loss of 25 cents per share on revenue of $421.3 million.

Shares of the company rose 42 cents, or more 10.6 percent, to close at $4.38 but fell 86 cents to $3.52 in after-hours trading.

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