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BET HOLDINGS, INC., REPORTS FOURTH QUARTER OPERATING INCOME INCREASE OF 27 PERCENT AND ANNUAL OPERATING INCOME INCREASE OF 20 PERCENT

 WASHINGTON, Sept. 27 /PRNewswire/ -- BET Holdings, Inc. (NYSE: BTV), parent company of BET Cable Network, today announced the following results, in millions of dollars (except for earnings per share data) for its fiscal year ended July 31, 1993:
 BET HOLDINGS, INC.
 12 Months Ended July 31, 1993 1992 Percent Change
 Revenues
 Advertising $40.6 $34.2 19 pct.
 Subscriber 33.2 26.9 23 pct.
 Other 0.4 0.6 -33 pct.
 Total 74.2 61.7 20 pct.
 Income from operations 23.6 19.6 20 pct.
 Non-operating expenses, net (1.9) (0.3) (A)
 Net income 12.6 11.7 8 pct.
 Earnings per share $0.61 $0.58 5 pct.
 Three Months Ended July 31, 1993 1992 Percent Change
 Revenues
 Advertising $11.1 $9.5 17 pct.
 Subscriber 9.2 7.5 23 pct.
 Other -- 0.4 --
 Total 20.3 17.4 17 pct.
 Income from operations 6.3 5.0 27 pct.
 Non-operating expenses, net (1.7) -- (A)
 Net income 2.7 3.0 -10 pct.
 Earnings per share $0.13 $0.14 -7 pct.
 (A) -- Includes a $1.8 million non-cash charge related to a litigation settlement in fiscal 1993 as described in the following paragraphs. Earnings per share for the year and three months ended July 31, 1993, approximate 66 cents and 18 cents, respectively, exclusive of the after-tax effect of such non-cash charge.
 Commenting on the results, Robert L. Johnson, president and chief executive officer, said: "BET's 1993 fiscal results reaffirm the ongoing strength of our cable network and the exciting prospect of BET Holdings' vision of becoming the dominant media company through which advertisers reach the black consumer market. Advertising revenue growth for the BET Cable Network benefited from strong demand for national spot advertising, which increased 27 percent in the fourth quarter and 21 percent during fiscal 1993. BET Holdings' consolidated subscriber revenue posted an annual increase of 23 percent. Moreover, in an increasingly competitive and regulatory environment for cable operators, billable subscribers(A) for the BET Cable Network increased to 32.4 million at the end of fiscal 1993 from 30 million at the end of fiscal 1992. The company further positioned itself for growth through its recent acquisition of an 81 percent interest in Action Pay-Per-View, renamed BET Action Pay-Per-View; the start-up of BET Direct, a subsidiary specializing in direct consumer marketing; recent managerial changes within its magazine publishing group; and the planned launch in fall 1994 of `BET on Jazz: The Cable Jazz Channel.'"
 The company's operations consist of the entertainment group and the publishing group. The entertainment group consists of BET Cable Network and BET Action Pay-Per-View, while the publishing group consists of Paige Publications and Emerge Communications, publishers of Young Sisters & Brothers (YSB) and Emerge, respectively (the magazines). The accompanying financial tables summarize the company's operating results and other financial information by these groups. During July 1993, the company completed its $11.3 million acquisition of an 81 percent interest in Avalon Communications, Inc., which operates BET Action Pay-Per-View, a national satellite pay-per-view channel based in Santa Monica, Calif. The acquisition, consummated on July 13, 1993, did not materially impact the company's operating results for either the quarter or year ended July 31, 1993.
 BET Holdings' 20 percent increase in operating revenues to $74.2 million in fiscal 1993 from $61.7 million in fiscal 1992 resulted primarily from higher advertising and subscriber revenues from BET Cable Network. BET Cable Network's advertising revenue increased $5.9 million, or 18 percent, to $38.1 million in fiscal 1993 from $32.2 million in fiscal 1992, with national spot advertising increasing 21 percent. For the quarter ended July 31, 1993, network advertising revenue increased 20 percent to $10.4 million in 1993 from $8.6 million in 1992 primarily due to a 27 percent increase in national spot advertising. National spot advertising comprised approximately 55 percent of BET Cable Network's total advertising revenue for fiscal 1993.
 BET Holdings' revenues from subscriber fees increased $6.3 million, or 23 percent, to $33.2 million in fiscal 1993 from $26.9 million in fiscal 1992, primarily from network operations. BET Cable Network's subscriber revenue increased $6.0 million to $31.6 million in fiscal 1993 from $25.6 million in fiscal 1992. The increase in subscriber revenue is attributable to a 13 percent increase in monthly per subscriber fees paid by cable operators, a 6 percent increase in the average number of monthly subscribers reported by BET Cable Network's affiliated cable operators from 29.3 million in fiscal 1992 to 31.2 million in fiscal 1993, and a decline in the level of launch support to its cable affiliates, in which new systems are offered up to six free months of initial service.
 BET Holdings' total operating expenses increased $8.6 million, or 20 percent, to $50.6 million in fiscal 1993 from $42.0 million in fiscal 1992, consistent with increased revenues. For the quarter ended July 31, 1993, total operating expenses increased 12 percent to $14.0 million from $12.5 million in the fourth quarter of fiscal 1992. These increases primarily relate to additional programming costs and additional marketing staff.
 Income from operations increased 20 percent to $23.6 million for fiscal 1993 from $19.6 million for fiscal 1992, notwithstanding losses incurred by the magazines of $4 million in fiscal 1993 as compared to $1.8 million in fiscal 1992. In the fourth quarter of fiscal 1993 the company relocated Emerge from New York to Washington to improve the magazines' operational efficiency and expanded the magazines' advertising sales force in an effort to improve the financial results of the magazines.
 During the fourth quarter, the company, its subsidiary, Black Entertainment Television, Inc., and Mr. Johnson entered into a settlement agreement with certain former employees in connection with previously disclosed litigation resulting in a $1.8 million non-cash charge together with a $0.7 million income tax benefit, or a reduction in net income of 5 cents per share. Since Mr. Johnson transferred his assets to effect the settlement, the effect to the company's net worth was to increase shareholders' equity by the $0.7 million tax benefit arising from the settlement.
 As a result of the foregoing, the company's net income for the quarter ended July 31, 1993, declined to $2.7 million from $3.0 million in the fourth quarter of fiscal 1992. However, net income in fiscal 1993 increased $0.9 million, or 8 percent, to $12.6 million. Earnings per share for the year and three months ended July 31, 1993, approximate 66 cents and 18 cents, respectively, exclusive of the after-tax effect of the above-described charge.
 Announced in March 1993, BET Holdings' stock repurchase plan is continuing with approximately 400,000 shares of Class A common stock repurchased to date. William T. Gordon, III, chief financial officer, stated, "We continue to view BET Holdings' stock as an excellent investment opportunity and the company will from time to time repurchase additional shares."
 BET Holdings, Inc.'s operations consist of the entertainment group and the publishing group. The entertainment group operates BET Cable Network, the nation's only advertiser-supported cable network that specifically focuses on the viewing interests and concerns of black Americans. The network cablecasts 24 hours per day and reaches 32.4 million subscribers(A), providing a broad mix of music videos, off-network situation comedies and original programming produced at the company's production facilities in Washington and Burbank, Calif. The entertainment group also includes BET Action Pay-Per-View, and has announced plans to launch the BET on Jazz: The Cable Jazz Channel. The publishing group publishes YSB, a general lifestyle magazine aimed at black teenagers, and Emerge, a general interest magazine targeted toward an upscale black audience. In addition, BET Holdings, Inc., owns an interest in United Image Entertainment, a production company producing black-oriented programming. BET Holdings, Inc., is the first black majority controlled company listed on the New York Stock Exchange.
 (A) -- The subscriber numbers are based on reports to the company as of July 31, 1993, from cable television systems carrying the BET Cable Network.
 BET HOLDINGS, INC.
 Segment Information
 (Unaudited)
 (Amounts in thousands)
 Three Months 12 Months
 Periods Ended July 31, 1993 1992 1993 1992
 Revenues
 Entertainment
 Advertising $10,374 $8,616 $38,096 $32,179
 Subscriber 8,823 6,918 31,583 25,563
 Other (64) 363 74 471
 Total 19,133 15,897 69,753 58,213
 Magazine publishing
 Advertising 677 885 2,489 2,015
 Subscriber 381 601 1,689 1,347
 Other 98 60 287 80
 Total 1,156 1,546 4,465 3,442
 Total Revenues 20,289 17,443 74,218 61,655
 Expenses
 Entertainment 11,548 10,434 42,115 36,756
 Magazine publishing 2,412 2,016 8,494 5,280
 Total expenses 13,960 12,450 50,609 42,036
 Income (Loss) From
 Operations
 Entertainment 7,585 5,463 27,638 21,457
 Magazine publishing (1,256) (470) (4,029) (1,838)
 Total 6,329 4,993 23,609 19,619
 Non-operating expenses,
 net (1,716) (19) (1,861) (290)
 Income before taxes $4,613 $4,974 $21,748 $19,329
 Depreciation and
 Amortization
 Entertainment
 Amortization of
 programming rights $349 $427 $2,658 $1,749
 Depreciation and other
 amortization 1,169 591 3,464 1,870
 Magazine publishing
 Depreciation and other
 amortization 17 19 38 44
 Total depreciation and
 amortization $1,535 $1,037 $6,160 $3,683
 Capital Expenditures
 Entertainment $8,410 $3,792 $10,788 $9,268
 Magazine publishing 213 31 224 45
 Total capital
 expenditures $8,623 $3,823 $11,012 $9,313
 BET HOLDINGS, INC.
 Consolidated Statements of Income
 (Unaudited)
 (Amounts in thousands, except earnings per share)
 12 Months Ended July 31, 1993 1992
 Revenues
 Advertising $40,585 $34,194
 Subscriber 33,272 26,910
 Other 361 551
 Total 74,218 61,655
 Operating expenses 50,609 42,036
 Income from operations 23,609 19,619
 Non-operating expenses
 Settlement of litigation
 by stockholder 1,800 --
 Other, net 61 290
 Income before income taxes 21,748 19,329
 Provision for income taxes 9,142 7,651
 Minority interest (34) --
 Net income $12,640 $11,678
 Earnings per share $0.61 $0.58
 Weighted average shares outstanding 20,844 20,295
 Three Months Ended July 31, 1993 1992
 Revenues
 Advertising $11,051 $9,501
 Subscriber 9,204 7,519
 Other 34 423
 Total 20,289 17,443
 Operating expenses 13,960 12,450
 Income from operations 6,329 4,993
 Non-operating expenses (income)
 Settlement of litigation
 by stockholder 1,800 --
 Other, net (84) 19
 Income before income taxes 4,613 4,974
 Provision for income taxes 1,945 1,967
 Minority interest (34) --
 Net income $2,702 $3,007
 Earnings per share $0.13 $0.14
 Weighted average shares outstanding 20,818 20,852
 -0- 9/27/93
 /CONTACT: Lisa R. Anderson or Dannette A. Wills of BET Holdings, Inc., 202-298-8771, or Lisa LaMagna of Abernathy, MacGregor, Scanlon, 212-371-5999/
 (BTV)


CO: BET Holdings, Inc. ST: District of Columbia IN: ENT PUB SU: ERN

GK-TW -- NY019 -- 5855 09/27/93 10:31 EDT
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