VeriSign (ticker: VRSN) pre-announced that it would miss consensus estimates for Q3 due to weakness in its wireless business. Here's an excerpt from its September 29th call in which CEO Stratton Sclavos explains the shortfall; his comments about the lack of hit content should also interest media investors:
A combination of factors, including seasonality, a lack of hit content, and new advertising guidelines and restrictions in several key European markets contributed to drive much higher subscriber churn than we had anticipated in the Mobile business during the quarter.
… we expect total revenues for Q3 to be approximately $410 million versus our previous guidance of 435 to 440 million, with Jamba! and Jamster! revenues contributing approximately 115 million versus the previous expectation of 140 million…
We are obviously very disappointed in our inability to overcome the weakness we saw in the Jamba! and Jamster! European business. In particular, it appears the lack of new hit content in a seasonally slow period adversely affected our efforts to improve the churn we began to see at the end of Q2. In addition, the imposition of new marketing restrictions and guidelines in the UK in September reaccelerated the churn in that market. This led to significant friction in the customer acquisition process that outweighed any positive impact from our customer retention and market expansion initiatives during the quarter.
(Quotes are from the CCBN StreetEvents transcript.)