GameSpot Parent CNET Posts Positive 2005 Financials

CNET Networks, owner of video game-related consumer websites GameSpot.com, GameFAQs.com, and Metacritic, announced its fourth-quarter and full-year results for 2005, a period ending December 31, 2005. The fourth-quarter revenue for the company increased by 20% over Q4 2004, resulting in earnings of $107.4 million. Profit for the quarter was $24.5 million, an increase over the Q4 2004 profit of $14.6 million. For the full year, the company took in $353 million, an increase of 21% over 2004's revenue of $291.2. Profit for the year was nearly four times 2004's profit of $10.6 million: the 2005 total was $39.8 million. Though not specifically reported on, the company's game websites fall into the "games and entertainment" category, which saw expansion during the year in part due to the launch of TV.com. No details were provided for the game sites' financials, but based on the overall company outlook, it's safe to assume the sites showed an impressive growth, meeting or exceeding overall interactive revenue growth in 2005. "Throughout 2005, we consistently delivered on our key growth objectives, including 26 percent interactive revenue growth, increasing profit margins, and strong free cash flow generation," said Shelby Bonnie, chairman and chief executive officer of CNET Networks. "As we enter 2006, our authentic brands like CNET, GameSpot, TV.com, Webshots and TechRepublic have great momentum in engaging the kinds of passionate and influential audiences that brand marketers want to reach." The company also issued guidance for 2006, anticipating total revenue for first quarter to reach $83 to $87 million, with operating losses of between $5.3 and $1.8 million. For the full year, the company expects a higher total revenue of at least $395 million, with operating income of $91 to $101 million.