Las Vegas ticket operator Tix Corporation saw its share price plummet by almost 20 per cent on Thursday after announcing that continuing operational concerns have led to its quarterly dividend being suspended.
Tix Corporation provides discount ticketing services through 10 stores in the Nevada entertainment hub under its Tix4Tonight marquee. It offers discounted tickets for same-day shows, concerts, attractions and sporting events, as well as discount reservations for dining. Tix4Tonight also serves as the official Las Vegas guest services partner for Expedia and its other brands.
In a statement, Tix Corporation said the dividend was to be suspended “due to the continued difficult operating environment in Las Vegas and to preserve capital”.
Its share price of $0.54 compares with $2.25 exactly a year ago – a drop of 76 per cent.
Tix Corporation ‘negatively impacted’
The company’s troubles were outlined in a Q1 trading update released in May which showed revenue had fallen 20 per cent year-on-year to $4.3m (£3.3m/€3.8m). First quarter 2017 selling, general and administrative expenses decreased slightly to $1.9m, while a net loss of $48,000 compared unfavourably with a profit of $488,000 in Q1 2016.
Speaking at the time, chief executive Mitch Francis said: “Our first quarter performance continued to be negatively impacted by last year’s significant number of permanent show closures and increased aggressive marketing from online ticket brokers, show producers and hotel properties.
“Performance was also negatively impacted by the return of a major triannual tradeshow and the Easter holiday being in April of this year compared to March of last year.
“We anticipate our future operating results will improve by our continuing to collaborate with Expedia Local Expert on several new programmes and by our implementing multiple new growth initiatives this year.”