LodgeNet Interactive (LNET) said it will not experience significant financial loss after an analyst report suggested its largest hotel-chain customer will phase out pornographic videos in its rooms.
The analyst note suggests that porn is a strong revenue generator for LodgeNet. But the company stood by its 2011 and 2012 guidance, and said there is no change in programming expected at currently installed properties during those years.
"It has been widely disclosed the company has been diversifying its revenue base, and is less reliant on revenue from mature content than at any point in the past," LodgeNet said in a statement. "The company stands behind its guidance, and has not adjusted its projections or outlook as a result of the agreement referenced in the report."
LodgeNet's response helped it recoup some of its losses from earlier in the day after the report sent its shares tumbling more than 30% to $2.88. The shares closed down 19.5% at $3.38 on Wednesday.
The provider of media and connectivity solutions to hospitality and health-care businesses said it has always offered hotels options to restrict mature content, and noted the customer in question will get the option to restrict the movies in 2013.
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