UPDATE 1-New Frontier Q4 profit lags Street; suspends dividend
June 3 (Reuters) - Adult-entertainment channel operator New Frontier Media Inc (NOOF.O) posted a lower-than-expected quarterly profit hurt by flat video-on-demand revenue, and suspended its cash dividend indefinitely, sending its shares down 29 percent to their lowest in more than four years.
The company, whose networks include TEN, Xtsy and Pleasure, earned $1.9 million, or 8 cents a share, for the fourth quarter, compared with $1.7 million, or 7 cents a share, a year ago.
Revenue fell 11 percent to $12.6 million.
Analysts on average expected the company to earn 9 cents a share, on revenue of $14.4 million, according to Reuters Estimates.
The company said it suspended its quarterly dividend as it plans to use cash flows in expansion opportunities in Europe and the Americas.
Shares of the Boulder, Colorado-based company were down 25 percent at $3.90 in midday trade on Nasdaq. (Reporting by Kuganandhan Paramanandan in Bangalore; Editing by Vinu Pilakkott)
