Gemstar-TV Guide Announces Full Year and Fourth Quarter 2007 Results

Gemstar-TV Guide International, Inc. (NASDAQ:GMST) announced that for the year ended December 31, 2007, the Company reported consolidated revenues of $627.7 million, an increase of 10%, versus $571.3 million in 2006. Growth was largely driven by a 28% increase in the Company’s Guidance Technology and Solutions segment. Operating income for 2007 of $65.9 million benefited from the reversal of $10.7 million in accrued patent rights liabilities relating to a former CEO and included costs of $7.4 million related to the Company’s exploration of strategic alternatives. Operating income for 2006 of $66.9 million benefited from the reversal of $40.1 million of accrued expenses relating to former officers of the Company and included $3.3 million in accrued patent rights expense relating to a former CEO. In addition to increased Guidance Technology and Solutions revenues, the year also saw reduced operating costs in the Company’s Publishing segment, partially offset by higher corporate marketing expense. Net income for 2007 increased to $176.9 million, or $0.41 per share, compared with net income of $72.5 million, or $0.17 per share in 2006. Net income for 2007 was positively impacted by $107.4 million in income tax benefits, as a result of reversing our deferred tax asset valuation allowance, a benefit of approximately $0.25 per share. Rich Battista, Gemstar-TV Guide CEO, commented, "I am pleased with the strong financial performance of the Company in 2007. Year over year we saw a 10% increase in consolidated revenue and, on an operating basis, the Company had a significant improvement it its financial performance. Our Guidance Technology and Solutions segment contributed considerably to this solid performance as we greatly expanded our patent licensing program both internationally and to emerging platforms, while also growing our IPG products and services businesses on a global basis. We also achieved a better-than-forecasted performance at TV Guide magazine.” Mr. Battista continued, "In 2007, the Company focused on the development and deployment of My TV Guide, our suite of cross-platform, next generation guidance tools and services. Our media businesses enjoyed solid distribution and each strengthened their content offerings with innovative enhancements, including the Online Video Guide at TVGuide.com.” 2007 BUSINESS HIGHLIGHTS   --   Expanded Interactive Program Guide (IPG) presence worldwide --   Cable and satellite subscribers worldwide receiving a licensed or Company provided IPG grew to 75.6 million, a 29% increase versus year-end 2006. 59.7 million were licensed and 15.9 million received a Company provided IPG, representing increases of 15% and 137%, respectively versus year-end 2006. Geographically, 60.8 million were domestic and 14.8 million were international households. -- In March 2007, the Company acquired Aptiv Digital, an IPG engineering and products company providing software solutions for television set-top boxes, including the Passport IPG, to multi-channel programming distributors domestically and internationally.   -- New IPG patent licensing agreements for international markets and emerging platforms in 2007 included: -- Sky Italia, the leading multi-channel video service provider in Italy with 4.2 million subscribers -- MediaFLO USA, Inc., a wholly owned subsidiary of Qualcomm Incorporated and an industry leading mobile entertainment service provider -- Verizon, the distributor of FiOS multi-channel programming services -- MobiTV, the leader in US mobile and broadband entertainment services -- Loewe Opta GmbH, Metz-Werke GmbH & Co. KG and KATHREIN-Werke KG, leading German device manufacturers of European televisions, recorders and set-top boxes   -- Signed IPG product agreements with cable system operators and CE manufacturers in 2007 including: -- Cox Communications, for Passport IPG for their U.S. digital cable footprint. -- Sony USA, for integration of the Company's IPG directly into their digital television's custom user interface. -- Mitsubishi, for the Company's "TV Guide Daily" IPG to be embedded into their range of new digital televisions. -- Polaroid Labs, for the Company's "Data Loader" to be embedded into their new "Freescape" digital media hub. -- CZCATV, a Mainland China cable system operator in Jiangsu province.   -- Increased worldwide patent portfolio -- The Company was awarded 109 patents worldwide within the video guidance arena in 2007. The Company's intellectual property portfolio for video guidance at year-end totaled over 1,300 patents with over 300 issued patents and 450 pending applications in the U.S.; over 550 issued patents and 100 pending applications in Europe; and over 300 issued patents and over 300 pending applications in Asia/South Pacific.   -- Introduced "My TV Guide", a suite of next generation cross-platform guidance services -- Verizon's FiOS TV service, EchoStar Communications, DirecTV, and TiVo, among others, agreed to interface with www.tvguide.com, thus enabling consumers to remotely schedule recordings on their set-top boxes. Remote recording will be available in 2008 for TV Guide's i-Guide IPG affiliates as part of the next planned release. -- Mediacom Communications and Insight Communications, among many other cable system operators, signed agreements to integrate Listings2Go, one of the Company's My TV Guide suite of services, into their own online television guides.   -- Grew Online, VOD and Mobile distribution -- Online Networks flagship Web site www.tvguide.com launched the Online Video Guide in 2007, which helped increase Online Networks' average monthly unique users to 5.0 million and annual page views to 948 million, increases of 54% and 38% respectively versus year-end 2006. For 2007, TVGuide.com ranked first in growth year-over-year of both uniques and average sessions per person among its competitive peer group. -- TV Guide SPOT increased distribution to 31 million digital cable homes, an increase of 18% versus year-end 2006. -- G-GUIDE, the Company's mobile IPG in Japan, doubled registered users, from year-end 2006, to over 21 million.   -- Solidified distribution for cable networks and publication business -- TV Guide Network household distribution grew to 83 million Nielsen households, a 4% increase versus year-end 2006. TV Guide Network is now shown full-screen without a scrolling program guide for 30 million DBS subscribers. -- TVG Network, the Company's horseracing network, increased domestic household distribution by over 50% to 29 million, from year-end 2006. Direct wagering handle increased by 10% to $478 million versus 2006. In the fourth quarter of 2007, TVG increased its active wagering states to 14 with the addition of New York and Florida. -- TV Guide magazine's MRI estimated weekly readership of over 20 million remains second among all US entertainment/celebrity weekly publications. Negative adjusted EBITDA reduced by 54% in 2007, coming in lower than previous projections and ahead of plan. FOURTH QUARTER 2007 FINANCIAL PERFORMANCE For the quarter ended December 31, 2007, the Company reported consolidated revenues of $155.8 million, an increase of 7%, versus $145.0 million in 2006. Growth was primarily driven by a 29% increase in revenues in the Guidance Technology and Solutions segment versus the prior year’s quarter. The Company reported a net loss for the fourth quarter of 2007 of $(1.5) million, or $0.00 per share, compared with net income of $31.8 million, or $0.07 per share for the prior year’s quarter. The fourth quarter of 2007 included $12.4 million from cross platform marketing expenses primarily for the national brand awareness campaign, depreciation and amortization charges of $10.7 million, and $4.2 million in costs related to the exploration of strategic alternatives. In 2006, the fourth quarter included $1.3 million in cross platform marketing expenses, depreciation and amortization charges of $8.2 million and the benefit of reversing $29.5 million in accrued liabilities related to a former officer. FULL YEAR AND FOURTH QUARTER 2007 SEGMENT FINANCIAL PERFORMANCE The schedule below reflects Gemstar-TV Guide’s performance for the years ended December 31, 2007 and 2006 and the fourth quarters of 2007 and 2006 by segment. The following segment information is presented and reconciled to consolidated income (loss) from continuing operations before income taxes. Certain prior period amounts, including the results of discontinued operations, have been reclassified to conform to the current presentation. More detailed information is contained in the Company’s Form 10-K for the year ended December 31, 2007, which was filed with the Securities Exchange Commission today. GEMSTAR-TV GUIDE INTERNATIONAL, INC. CONSOLIDATED CONTINUING SEGMENT PERFORMANCE (1) (In thousands)   Year ended December 31, Three months ended December 31,   2007   2006   2007   2006 Guidance Technology and Solutions: Revenues $ 286,129 $ 222,851 $ 71,242 $ 55,165 Operating expenses(2)   100,033   87,062   29,419   25,931 Adjusted EBITDA(3)   186,096   135,789   41,823   29,234 Media Networks: Revenues 199,286 196,992 51,632 51,723 Operating expenses, exclusive of lease settlement (2)   162,626   154,299   38,194   38,675 Adjusted EBITDA(3)   36,660   42,693   13,438   13,048 Publishing: Revenues 142,328 151,411 32,975 38,098 Operating expenses(2)   162,590   193,251   43,919   49,125 Adjusted EBITDA(3)   (20,262 )   (41,840 )   (10,944 )   (11,027 ) Cross Platform Costs: Operating expenses, net(2)   92,475   34,567   38,259   (8,589 ) Adjusted EBITDA(3)   (92,475 )   (34,567 )   (38,259 )   8,589 Consolidated: Revenues 627,743 571,254 155,849 144,986 Operating expenses (2)   517,724   469,179   149,791   105,142 Adjusted EBITDA(3) 110,019 102,075 6,058 39,844 Stock compensation (4,024 ) (2,027 ) (1,304 ) (564 ) Depreciation and amortization   (40,133 )   (33,181 )   (10,735 )   (8,194 ) Operating income (loss) 65,862 66,867 (5,981 ) 31,086 Interest income, net 23,930 26,602 4,750 8,036 Other (expense) income, net   (1,009 )   757   (1,478 )   420 Income (loss) from continuing operations before income taxes $ 88,783 $ 94,226 $ (2,709 ) $ 39,542   (1) Segment information is presented and reconciled to consolidated income (loss) from continuing operations before income taxes in accordance with SFAS No. 131. Intersegment revenues and expenses have been eliminated from segment financial information as transactions between reportable segments are excluded from the measure of segment profit and loss reviewed by the chief operating decision maker. (2) Operating expenses means operating expenses, excluding stock compensation, depreciation and amortization, and impairment of intangible assets. (3) Adjusted EBITDA is defined as operating income (loss), excluding stock compensation, depreciation and amortization, and impairment of intangible assets. The Company believes Adjusted EBITDA to be relevant and useful information as Adjusted EBITDA is the primary measure used by our chief operating decision maker to evaluate the performance of and make decisions about resource allocation to the industry segments. Guidance Technology and Solutions Revenues for the full year ended December 31, 2007 were $286.1 million, or 45% of the Company’s total revenue. Revenues for 2007 increased 28% from revenues of $222.9 million in 2006. This was primarily due to a 41% increase in IPG patent revenues and a 32% increase in IPG Products and Services revenues. Partially offsetting this was an 18% decrease in VCR Plus+ revenues, due to a reduction in units shipped incorporating VCR Plus+ technology. For the full 2007 year, adjusted EBITDA increased to $186.1 million, a 37% increase versus 2006. This was largely due to increased revenues, partially offset by higher operating expenses primarily from the acquisition of Aptiv Digital. Revenues for the fourth quarter ended December 31, 2007 were $71.2 million, an increase of 29% versus the prior year’s quarter. The increase was primarily due to a 29% increase in IPG Patent License revenues and a 44% increase in IPG Products and Services revenues, offset by a 19% decrease in VCR Plus+ revenues versus the prior year’s quarter. Adjusted EBITDA in the fourth quarter increased to $41.8 million, a 43% increase versus the prior year’s quarter, due to the increase in revenues. Media Networks Revenues for the full year ended December 31, 2007 were $199.3 million, or 32% of the Company’s total revenue. Revenues for 2007 increased 1% from revenues of $197.0 million in 2006. This was primarily due to a 29% increase in revenues at Online Networks, primarily attributable to increased traffic to the Web sites, increased CPMs, and new advertisers for the Online Video Guide. For the full 2007 year, adjusted EBITDA decreased to $36.7 million, a 14% decrease versus 2006, principally due to the planned increase in programming and marketing for TV Guide Network. Revenues for the fourth quarter ended December 31, 2007 were $51.6 million, relatively flat with the prior year’s quarter. Increased revenues of 33% at Online Networks and 1% at TV Guide Network were offset by an 8% decrease at TVG Network. Adjusted EBITDA in the fourth quarter increased to $13.4 million, a 3% increase versus the prior year’s quarter. Publishing Revenues for the full year ended December 31, 2007 were $142.3 million, or 23% of the Company’s total revenue. Revenues for 2007 decreased 6% from revenues of $151.4 million in 2006. This was primarily due to an anticipated decrease in subscriber revenues, partially offset by higher advertising revenues, which increased 15% primarily due to a 23% increase in advertising paging versus 2006. For the full 2007 year, adjusted EBITDA was reduced to negative $(20.3) million, an improvement of 52%, or $21.6 million, versus 2006. This substantial improvement was primarily due to a $21.2 million decrease in TV Guide magazine production costs mainly as a result of a decrease in average printed copies per issue, lower paper costs, and reduced general and administrative expenses from greater operating efficiencies. With this improved performance, the Company anticipates continuing, but declining losses for the next two to three years. Revenues for the fourth quarter ended December 31, 2007 were $33.0 million, a decrease of 13% versus the prior year’s quarter. The decrease was primarily due to an anticipated reduction in circulation related revenues, partially offset by increased advertising revenues at TV Guide magazine. Adjusted EBITDA in the fourth quarter was negative $(10.9) million, an improvement over the prior year’s quarter. The planned revenue decrease was more than offset by greater operating efficiencies including the outsourcing of fulfillment services, reductions in general and administrative costs, and reduced print and paper costs. Cross Platform Costs For the full 2007 year, adjusted EBITDA was negative $(92.5) million compared with an adjusted EBITDA of negative $(34.6) million in 2006. Cross-platform product development and technology costs increased $6.4 million due to a ramp up in capabilities during 2007. Cross-platform marketing costs increased $19.9 million due to the national cross-platform TV and online consumer marketing campaign which ran during the Fall TV season. Corporate general and administrative costs increased by $31.7 million as 2006 included the benefit of $40.1 million in accrued expense reversals relating to two former officers of the Company. 2007 included the benefit of $10.7 million in accrued patent rights liabilities relating to a former CEO and $7.4 million in expenses related to the exploration of strategic alternatives. Adjusted EBITDA in the fourth quarter was negative $(38.3) million compared with adjusted EBITDA of positive $8.6 million in the prior year’s quarter. The fourth quarter of 2007 included an increase of $11.1 million in planned cross-platform marketing costs for the national brand awareness campaign and $4.2 million in costs related to the strategic alternatives process. The fourth quarter of 2006 included the benefit from reversing $29.5 million in accrued liabilities related to a former CEO of the Company, following a favorable arbitration ruling. CASH & LIQUIDITY The Company reported full year positive operating cash flow of $136 million, an increase of $60 million over 2006 due to an increase in income and a $16.6 million increase in net income tax refunds in the current year versus the prior year. Adjusted EBITDA and changes in working capital also improved as compared to 2006. At December 31, 2007, the Company’s cash, cash equivalents and marketable securities were $605.4 million, excluding restricted cash of $32.1 million, an increase of $91.8 million versus the year ended December 31, 2006. Capital expenditures for 2007 totaled $33.8 million. Outstanding short- and long-term debt, made up entirely of capital lease obligations, was $12.1 million, compared with $12.7 million at year end 2006. SUBSEQUENT EVENT On February 1, 2008, the Company and its former directors and officers liability insurance carriers reached a confidential resolution of all of the disputes between them. As part of this resolution, the Company will receive payments totaling $32.5 million. These proceeds, which are taxable, will be recorded in the Company’s consolidated financial statements, as a reduction to selling, general and administrative expenses within Cross Platform Costs in the first quarter of 2008. PENDING ACQUISITION BY MACROVISION In July, 2007 the Company announced that it would explore strategic alternatives intended to maximize shareholder value. On December 6, 2007, the Company signed a definitive agreement to be acquired by Macrovision Corporation, a Nasdaq listed company, in a cash and stock transaction. Macrovision Corporation is a global leader in protection, enablement and distribution solutions that empower consumers to discover, acquire, manage and enjoy digital content. On January 11, 2008, the Federal Trade Commission and the Department of Justice granted early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act, which ends the U.S. government’s antitrust review of the transaction. A Registration Statement on Form S-4 (SEC File No. 333-148825) was filed on January 23, 2008 with the Securities and Exchange Commission by Macrovision Solutions Corporation, a new holding company formed to effectuate the transaction. The registration statement contains a preliminary joint proxy statement/prospectus describing the transaction. The transaction requires, among other customary closing conditions, approval by two-thirds of the outstanding shares of the Company’s common stock, and a majority of the shares of Macrovision Corporation common stock voting at a special meeting of Macrovision stockholders. News Corporation, which owns approximately 41% of the Company’s common stock, has agreed to vote in favor of the proposed transaction, subject to the terms of a voting agreement. Shareholders, investors and other interested parties may obtain a copy of the definitive joint proxy statement/prospectus and any other relevant documents (when it becomes available) that Gemstar-TV Guide files with the SEC at the SEC’s web site at www.sec.gov. The definitive joint proxy statement/prospectus (when it becomes available) and any other relevant documents will also be accessible at www.gemstartvguide.com or obtained free from the Company by directing a request to Gemstar-TV Guide International, Inc., 6922 Hollywood Blvd. 12th Floor, Los Angeles, CA 90028 Attn: Investor Relations. ABOUT GEMSTAR-TV GUIDE Gemstar-TV Guide International, Inc. (the "Company”) (NASDAQ: GMST) is a leading global media, entertainment, and technology company that develops, licenses, markets and distributes products and services that maximize the video guidance and entertainment experience for consumers. The Company's businesses include: television, publishing, and new media properties; interactive program guide services and products; and intellectual property licensing. Additional information about the Company can be found at www.gemstartvguide.com. This news release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. Any such forward-looking statements are not guarantees of future performance or results and involve risks and uncertainties that may cause actual performance or results to differ materially from those in the forward-looking statements, including risks and uncertainties related to the timely availability and market acceptance of products and services incorporating the Company's technologies and content; our investments in new and existing businesses; the impact of competitive products and services; the pending acquisition of the Company by Macrovision Corporation and events and circumstances related thereto; and the other risks detailed from time to time in the Company's SEC reports, including the most recent reports on Forms 10-K, 10-Q and 8-K, each as it may be amended from time to time. The Company assumes no obligation to update these forward-looking statements. Note to Editors: Gemstar and TV Guide are trademarks or registered trademarks of Gemstar-TV Guide International, Inc. and/or its subsidiaries. The names of other companies, products and services used herein are for identification purposes only and may be trademarks of their respective owners. GEMSTAR-TV GUIDE INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS (In thousands, except per share data)         December 31, 2007   2006 ASSETS Current assets: Cash and cash equivalents $ 516,988 $ 464,637 Marketable securities 88,430 48,938 Restricted cash 32,100 31,814 Receivables, net 81,628 73,786 Deferred tax assets, net 33,124 13,491 Current income taxes receivable — 49,588 Other current assets   21,559   18,329 Total current assets 773,829 700,583 Property and equipment, net 80,451 68,182 Indefinite-lived intangible assets 62,138 61,921 Finite-lived intangible assets, net 81,240 92,340 Goodwill 262,591 260,503 Income taxes receivable, long-term 8,808 22,731 Deferred tax assets, long-term 72,016 3,141 Other assets   15,455   14,336 $ 1,356,528 $ 1,223,737 LIABILITIES AND STOCKHOLDERS’ EQUITY   Current liabilities: Accounts payable $ 31,269 $ 32,392 Accrued liabilities 90,980 104,259 Income taxes payable 2,160 — Current portion of capital lease obligations 655 605 Current portion of deferred revenue   122,922   128,516 Total current liabilities 247,986 265,772 Long-term capital lease obligations, less current portion 11,456 12,111 Deferred revenue, less current portion 329,871 368,950 Other liabilities 69,802 123,779 Commitments and contingencies Stockholders’ equity: Preferred stock, par value $.01 per share; authorized 150,000 shares, none issued — — Common stock, par value $.01 per share; authorized 2,350,000 shares 433,759 shares issued and 428,887 shares outstanding at December 31,2007; 433,759 shares issued and 427,889 shares outstanding at December 31, 2006 4,337 4,337 Additional paid-in capital 8,454,754 8,456,117 Accumulated deficit (7,717,157 ) (7,950,421 ) Accumulated other comprehensive income, net of tax 3,262 665 Treasury stock, at cost; 4,872 shares at December 31, 2007 and 5,870 shares at December 31, 2006   (47,783 )   (57,573 ) Total stockholders’ equity   697,413   453,125 $ 1,356,528 $ 1,223,737   For additional information please see Notes to Consolidated Financial Statements in Form-10K. GEMSTAR-TV GUIDE INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data)         Year Ended Three Months Ended December 31, December 31,   2007     2006   2007     2006 (Unaudited)   Revenues: $ 627,743 $ 571,254 $ 155,849 $ 144,986 Expenses: Cost of revenues 199,106 220,058 48,542 52,402 Selling, general and administrative 322,642 251,148 102,553 53,304 Deprecation and amortization   40,133   33,181   10,735   8,194   561,881   504,387   161,830   113,900 Operating income (loss) 65,862 66,867 (5,981 ) 31,086 Interest income, net 23,930 26,602 4,750 8,036 Other (expense) income, net   (1,009 )   757   (1,478 )   420 Income (loss) from continuing operations before income taxes 88,783 94,226 (2,709 ) 39,542 Income tax (benefit) expense (84,462 ) 72,464 (1,224 ) 7,731         Income (loss) from continuing operations   173,245   72,464   (1,485 )   31,811 Discontinued operations: Income from discontinued operations 5,858 - - -   Income tax expense   2,217 - - - Income from discontinued operations   3,641 - - - Net income (loss) $ 176,886 $ 72,464 $ (1,485 ) $ 31,811 Basic and diluted per share: Income from continuing operations $ 0.40 $ 0.17 $ 0.00 $ 0.07 Income from discontinued operations $ 0.01 $ 0.00 $ 0.00 $ 0.00 Net income $ 0.41 $ 0.17 $ 0.00 $ 0.07 Weighted average shares outstanding: Basic 428,313 426,219 428,786 426,305 Diluted 429,884 426,288 428,786 426,420   See accompanying Notes to Consolidated Financial Statements in Form 10-K. GEMSTAR-TV GUIDE INTERNATIONAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands)   Year ended December 31, 2007     2006   Cash flows from operating activities: Net income $ 176,886 $ 72,464 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 40,133 33,181 Deferred income taxes (88,508 ) 14,816 Stock compensation expense 4,024 2,027 Other 4,745 3,995 Changes in operating assets and liabilities: Receivables (413 ) 4,010 Restricted cash (286 ) 7,670 Income taxes receivable/payable, net 65,671 30,255 Other assets (5,038 ) 14,958 Accounts payable, accrued liabilities and other liabilities (16,106 ) (39,236 ) Deferred revenue   (44,673 )   (67,733 ) Net cash provided by operating activities   136,435 76,407   Cash flows from investing activities: Purchases of marketable securities (449,208 ) (103,285 ) Sales of marketable securities 240,760 - Maturities of marketable securities 170,348 63,585 Acquisition of Aptiv, net of acquired cash of $4,466 (11,814 ) - Additions to property and equipment (33,783 ) (33,803 ) Other   (5,156 )   (3,233 ) Net cash (used in) provided by investing activities   (88,853 ) (76,736 ) Cash flows from financing activities: Repayments of capital lease obligations (605 ) (557 ) Proceeds from exercise of stock options 3,794 226 Excess tax benefit from exercise of stock options   609 19 Net cash provided by (used in) financing activities   3,798 (312 ) Effect of exchange rate changes on cash and cash equivalents   971 147   Net increase (decrease) in cash and cash equivalents 52,351 (494 ) Cash and cash equivalents at beginning of period   464,637   465,131 Cash and cash equivalents at end of period $ 516,988 $ 464,637 Supplemental disclosures of cash flow information: Cash paid for income taxes $ 15,355 $ 14,232 Cash received from income tax refunds 70,161 52,434 Cash paid for interest 995 1,043   For additional information please see Notes to Consolidated Financial Statements in Form-10K. SEGMENT REVENUE INFORMATION:   Guidance Technology and Solutions Segment (in thousands):                     Full Year ended Three months ended December 31, Change December 31, Change   2007       2006 Dollars Percent   2007       2006 Dollars   Percent IPG Patent Licensing $ 168,433 $ 119,562 $ 48,871 40.9 % $ 42,935 $ 33,232 $ 9,703 29.2 % IPG Products and Services 75,449 57,229 18,220 31.8 % 20,353 14,167 6,186 43.7 % VCR Plus+ 29,574 36,237 (6,663 ) (18.4 )% 4,194 5,169 (975 ) (18.9 )% Other   12,673   9,823   2,850 29.0 %   3,760   2,597   1,163 44.8 % Total $ 286,129 $ 222,851 $ 63,278 28.4 % $ 71,242 $ 55,165 $ 16,077 29.1 % Media Networks Segment (in thousands):                   Full year ended Three months ended December 31, Change December 31, Change   2007       2006 Dollars Percent   2007       2006 Dollars   Percent TV Guide Network $ 129,092 $ 129,249 $ (157 ) (0.1 )% $ 32,581 $ 32,233 $ 348 1.1 % TVG 56,615 57,175 (560 ) (1.0 )% 14,991 16,365 (1,374 ) (8.4 )% Online Networks 13,212 10,246 2,966 28.9 % 3,999 3,015 984 32.6 % Other   367   332   45 14.0 %   61   110   (49 ) (44.5 )% Total $ 199,286 $ 196,992 $ 2,294 1.2 % $ 51,632 $ 51,723 $ (91 ) (0.2 )% Publishing Segment (in thousands):                       Full year ended Three months ended December 31, Change December 31, Change   2007       2006   Dollars   Percent   2007       2006 Dollars   Percent TV Guide Magazine(1) $ 142,328 $ 149,929 $ (7,601 ) (5.1 )% $ 32,975 $ 36,715 $ (3,740 ) (10.2 )% Inside TV Magazine   --   1,482   (1,482 ) (100 )%   --   1,383   (1,383 ) (100 )% $ 142,328 $ 151,411   (9,083 ) (6.0 )% $ 32,975 $ 38,098 $ (5,123 ) (13.4 )% (1) TV Guide magazine revenues are reported net of rack costs, retail display allowances, distribution fees and initial placement order ("IPO”) fees. IPO fees are initial fees paid to retailers for front end display pocket space at check out counters. SEGMENT OPERATING STATISTICS:   Additional Media Networks Operating Statistics     December 31, 2007 December 31, 2006 Subscriber Data (in thousands) (1) TV Guide Network 83,290 79,717 TVG 29,100 19,400 Online Networks unique users (2) (3) 5,016 3,260 Tvguide.com unique users (2) 4,538 3,099   (1) Subscriber data represents: -- Nielsen households for domestic TV Guide Network. -- Domestic households for TVG, based primarily on information provided by distributors. (2) Average monthly unique users as measured by Nielsen/NetRatings. (3) Online Networks comprises the unduplicated unique users of tvguide.com and our other Web sites, subsequent to the date we acquired them. Additional Publishing Operating Statistics:         (in thousands) 2007 2006 Q4, 2007 Q4, 2006 TV Guide Magazine circulation (1): Newsstand (2) 225 286 201 255 Subscriptions 2,890 3,134 2,929 2,850 Sponsored/Verified 169 88 162 175 3,284 3,508 3,292 3,280   (1) Average weekly circulation for the quarter and year ending December 31.   (2) Current period numbers include an estimate for returns. Prior period numbers are restated to reflect actual returns.