NeuLion shares tumble after report of 8% revenue drop
Matt Soldano, 26, of Selden, monitors streaming digital video broadcasting, in the technical operations center, at NeuLion, on Nov. 4, 2016, in Plainview. Credit: Heather Walsh
Shares of NeuLion Inc. tumbled Thursday morning after the Plainview-based provider of video-streaming services reported that third quarter revenue declined 8 percent to $22 million.
The stock fell 15.5 percent to 35 cents in early-morning trading following the earnings release after Wednesday’s market close. NeuLion shares, which recovered to 49 cents by Thursday’s close, are down more than 45 percent in the past 12 months.
The company attributed much of the revenue decline to the loss of $1.3 million from the National Hockey League. In 2015, the NHL cut an online streaming deal with NeuLion rival BAMTech.
NeuLion’s net loss for the quarter widened to $5.1 million, or 2 cents per diluted share, from a net loss of $2.7 million, or 1 cent per diluted share, in the 2016 quarter.
The company said that during the third quarter, the NFL renewed its agreement with NeuLion for its NFL Game Pass service, which includes archived games in the United States and live games around the world except in select markets including Canada and Europe.
In a government filing Wednesday, Neulion said that it is facing a number of lawsuits in connection with streaming problems related to the Aug. 26 bout between mixed martial arts fighter Conor McGregor and boxer Floyd Mayweather. The company said it plans to defend itself against the lawsuits and that it is working with the UFC to process refunds for purchasers who were unable to view the fight.
NeuLion co-founder Nancy Li and her husband, Charles Wang, co-founder of CA Technologies and former majority owner of the New York Islanders, own more than 20 percent of the company’s shares, according to proxy statements compiled by Bloomberg. Li serves as executive chair and Wang is a director.
Ken Schachter covers corporate news, including technology and aerospace, and other business topics for Newsday. He has also worked at The Miami Herald and The Jerusalem Post.
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