Newsmax Swings to $15.2 Million Third-Quarter Profit

The media company earned 12 cents a share, compared with a loss of 3 cents a share, or $4.1 million, in the same quarter a year earlier. Revenue rose to $69 million from $45.3 million. FactSet-polled analysts had expected a loss of 1 cent a share and revenue of $49.8 million.

Newsmax said $14 million of the quarter’s revenue was recognized in connection with a one-time service revenue termination payment under an advertising purchase agreement with a customer. Without that item, revenue would have been $55 million, up 22% year over year.

“Setting aside the one-time revenue item, we delivered our fastest revenue growth since our listing and a second consecutive profitable quarter,” Chief Executive Christopher Ruddy said. He said engagement rose during the midterm campaign, calling it “an early indicator of what is ahead.”

Newsmax raised its full-year revenue guidance to $226 million to $230 million to account for the one-time item, while keeping its underlying growth guidance unchanged. The shares rose to $8.25 in after-hours trading Thursday after closing down 5.8% at $7.29. They were down 5.7% year to date.