On Command Reports Results

20th Nov 2003

PRNewswire-FirstCall DENVER, Colo. Nov. 19 :

On Command Corporation (BULLETIN BOARD: ONCO) , a leading provider of
in-room interactive services, business information and guest services for
the lodging industry, today announced its financial results for the
quarter and nine months ended September 30, 2003.

Total net revenue for the third quarter of 2003 was $61.0 million compared
to $60.8 million in the third quarter of 2002. Room revenue increased by
2.5% to $59.5 million in the third quarter of 2003 compared to $58.0
million in the third quarter of 2002.

Adjusted EBITDA (defined by On Command as revenue less direct costs of
revenue and other cash operating expenses, excluding depreciation and
amortization and asset impairments and other charges) for the third
quarter of 2003 was $15.5 million, a decrease of $2 million compared to
Adjusted EBITDA in the third quarter of 2002 of $17.5 million. For the
nine months ended September 30, 2003, Adjusted EBITDA was $45.3 million
compared to $49.6 million in the comparable period in 2002. (Please see
schedule 1 attached for a reconciliation of 2003 and 2002 Adjusted EBITDA
to loss from operations.)
Loss from operations for the third quarter ended September 30, 2003 was
$4.3 million compared to $2.5 million for the corresponding period of 2002.

The Company reported a net loss attributed to common stockholders of $11.1
million ($0.36 per share) for the quarter, compared to a $8.3 million
($0.27 per share) net loss for the corresponding period in 2002.


Revenue per room for the third quarter was $23.49 compared to $22.86 for
the same period in 2002, the increase due primarily to an increase in
revenue generated from short subjects, digital music and television-based
Internet products.
Highlights for the third quarter include:—installed the digital
platform in 10,000 rooms, bringing the total number of digital rooms to
343,000 or 39.0% of the total owned room base of 879,000;—installed the
digital music product in more than 43,600 rooms and the TV Internet
service to more than 6,600 rooms, bringing total digital music rooms to
293,000 and TV Internet capability to 285,000 rooms;—reduced capital
spending for the nine months ended September 30, 2003 to $35.4 million,
compared to $41.4 million in the first nine months of 2002. About On
On Command Corporation ( http://www.oncommand.com/ ) is a leading provider
of in-room entertainment technology to the lodging and cruise ship
industries. On Command is a majority-owned subsidiary of Liberty Satellite
& Technology, Inc.
On Command entertainment services include: on-demand movies; television
Internet services using high-speed broadband connectivity; television
email; short form television features covering drama, comedy, news and
sports; PlayStation video games; and music-on-demand services through
Instant Media Network, a majority-owned subsidiary of On Command
Corporation and the leading provider of digital on-demand music services
to the hotel industry. All On Command products are connected to guest
rooms and managed by leading edge video-on-demand navigational controls
and a state-of-the art guest user interface system. The guest menu system
can be customized by hotel properties to create a robust platform that
services the needs of On Command hotel partners and the traveling public.
On Command and its distribution network services more than 1,000,000 guest
rooms, which touch more than 300 million guests annually.

On Command`s direct served hotel properties are located in the United
States, Canada, Mexico, and Spain. On Command distributors serve cruise
ships operating under the Royal Caribbean, Costa and Carnival flags. On
Command hotel properties include more than 100 of the most prestigious
hotel chains and operators in the lodging industry: Accor, Adam`s Mark
Hotels & Resorts, Fairmont, Four Seasons, Hilton Hotels Corporation,
Hyatt, Loews, Marriott (Courtyard, Renaissance, Fairfield Inn and
Residence Inn), Radisson, Ramada, Six Continents Hotels
(Inter-Continental, Crowne Plaza and Holiday Inn), Starwood Hotels &
Resorts (Westin, Sheraton, W Hotels and Four Points), and Wyndham Hotels &



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