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BET HOLDINGS, INC. REPORTS THIRD QUARTER RESULTS -- NET INCOME INCREASES 6 PERCENT ON REVENUE INCREASE OF 16 PERCENT

 WASHINGTON, June 3 /PRNewswire/ -- BET Holdings, Inc. (NYSE: BTV), parent company of Black Entertainment Television, Inc. owner and operator of the BET Cable Network, today announced the following results, in million of dollars (except for per share data and outstanding shares data), for its third fiscal quarter ended April 30, 1993:
 Percent
 Three months ended April 30 1993 1992 Change
 Revenues
 Advertising $9.6 $8.7 10
 Subscriber 8.9 7.3 22
 Other .1 .0 --
 Total 18.6 16.0 16
 Income from operations 6.3 5.4 17
 Net income 3.7 3.5 6
 Earnings per share $.18 $.17 6
 Weighted average number
 of shares outstanding
 (thousands) 20,852 20,852 --
 Percent
 Nine months ended April 30 1993 1992 Change
 Revenues
 Advertising $29.5 $24.7 19
 Subscriber 24.1 19.4 24
 Other .3 .1 200
 Total 53.9 44.2 22
 Income from operations 17.3 14.6 18
 Net income 9.9 8.7 14
 Earnings per share $.48 $.43 12
 Weighted average number
 of shares outstanding
 (thousands) 20,852 20,108 --
 Commenting on the results, Robert L. Johnson, president and chief executive officer, said, "We are pleased to announce positive results for our third quarter ended April 30, 1993. Financial performance for this quarter demonstrated continued growth with operating revenue increasing 16 percent, subscriber revenue increasing 22 percent and advertising revenues increasing 10 percent. Operating cash flow (earnings before interest, income taxes, depreciation and amortization) increased $1.7 million, or 27 percent. Also, during this third fiscal quarter of 1993, three months ahead of schedule, the BET Cable Network achieved its projected total year's end subscriber growth goal of adding 2 million(A) subscribers. This has resulted in an increase on the average number of subscribers reported to the BET Cable Network to 31.7 million(A) during this third fiscal quarter as compared with 29.5 million(A) during the comparable 1992 period, and an increase in the BET Network's subscriber base to 32.2 million(A) as of April 30, 1993." With 65 percent of its current affiliates having renewed their affiliation agreements for a ten-year period beginning in 1994, the BET Cable Network has also continued steady progress in negotiating a ten- year rate card.
 Other highlight for this quarter include the BET Cable Network's continued strong program ratings and BET Holdings' May 21, 1993 announcement that its subsidiary Black Entertainment television, Inc., had entered into negotiations with Avalon Communications to acquire a majority interest in Action Pay-Per-View, a Santa Monica, Calif.-based national pay-per-view movie channel
with approximately 5 million subscribers. These negotiations are continuing.
 BET Holdings' overall advertising revenue increased $.9 million, or 10 percent, to $9.6 million in the third fiscal quarter of 1993 from $8.7 million in the third fiscal quarter of 1992. For the BET Cable Network, advertising revenue increased $1.1 million, or 14 percent, to $9.2 million from $8.1 million. National spot advertising for the BET Cable Network increased 7 percent for this fiscal year, and other types of advertising increased 24 percent.
 The company's overall subscriber revenue increased $1.6 million, or 22 percent, to $8.9 million in the third quarter of fiscal 1993 from $7.3 million in the third quarter of fiscal 1992, with subscriber revenues at the BET Cable Network increasing $1.4 million, or 20 percent, to $8.3 million from $6.9 million. This increase resulted primarily from a 13 percent increase in the BET Cable Network's monthly per subscriber fees. Also contributing to this increase in the 7 percent increase in the average number of subscribers reported to the BET Cable Network by its cable affiliates during the third quarter of fiscal 1993.
 Production and programming expenses for BET Holdings increased $.5 million, or 8 percent, to $6.6 million in the third quarter of fiscal 1993 from $6.1 million in the third quarter of fiscal 1992. This total increase resulted primarily from a $.5 million increase, or 10 percent, in the BET Cable Network's production and programming expenses. Of this increase, $.1 million related to personal and related benefit costs as a result of expanded original programming, $.3 million related to amortization of program rights related to "Triple Threat," a variety game show that was acquired in the first quarter of fiscal 1993 and $.1 million related to other programming costs.
 BET Holdings' marketing expenses increased $1.1 million, or 55 percent, to $3.1 million in the third fiscal quarter of 1993 from $2.0 million in the third quarter of fiscal 1992. Of this increase, $.6 million related to increases in personnel and related benefit costs as a result of the BET Cable Network's expansion of its advertising and affiliate marketing sales force, $.2 million related to general increases in operating expenses for the BET Cable Network and $.3 million related to marketing expenses incurred in connection with the company's publishing operations.
 General and administrative expenses for BET Holdings increased $.1 million, or 4 percent, to $2.5 million in the third quarter of fiscal 1993 from $2.4 million in the third quarter of fiscal 1992. The $.1 million increase resulted from $.4 million increase in general and administrative expenses for the company's publishing operations, which was partially offset in part by a $.3 million decrease in general and administrative expenses for the BET Cable Network. The $.3 million decrease in general and administrative expenses related to the BET Cable Network for the third quarter is attributable to $.1 million in lower personnel cost and $.2 million in lower general operating costs.
 The company's $.9 million increase, or 17 percent, in income from operations to $6.3 million in the third quarter of fiscal 1993 from $5.4 million in the third quarter of fiscal 1992 was adversely affected by losses from the company's publishing operations, which increased 175 percent, or $.7 million, to $1.1 million in the third fiscal quarter of 1993 from $.4 million for the third fiscal quarter of 1992. BET Holdings anticipates continued losses related to its publishing operations until YSB and Emerge magazines are fully established.
 Revenues for the nine month period ending April 30, 1993 increased 22 percent from the comparable period a year ago. The company's advertising revenue for this period was up 19 percent and subscriber revenue up 24 percent. Production and programming expenses increased 19 percent and marketing expenses increased 50 percent. Operating cash flow (earnings before interest, income tax, depreciation and amortization) increased $4.9 million, or 29 percent, from $16.8 million to $21.7 million. Net income increased $1.2 million, or 14 percent, to $9.9 million for the nine month period ended April 30, 1993 from $8.7 million for the comparable 1992 period.
 BET Holdings, Inc. operates the BET Cable Network, the nation's first and only advertiser supported basic cable network that specifically targets the viewing interests and concerns of black Americans. Cablecasting 24 hours per day, the BET Cable Network reached approximately 32.2 million subscribers(A) as of April 30, 1993. The BET Cable Network provides a broad mix of black-oriented programming both acquired and produced at the company's production facilities in Washington, D.C. and Burbank, Calif. Through BET Holdings, Inc.'s subsidiary, Paige Publications, Inc., the company publishes YSB, a general lifestyle magazine aimed at black teenagers. BET Holdings, Inc. also owns a controlling interest in Emerge Communications, Inc., the publisher of Emerge, a general interest magazine primarily targeted towards an upscale black audience. BET Holdings, Inc. is the first black majority-controlled company listed on the New York Stock Exchange.
 (A) Subscriber numbers are based on reports to the company from cable television systems carrying the BET Cable Network.
 BET HOLDINGS, INC.
 Consolidated Statements of Income
 (Unaudited -- In thousands, except per share amounts)
 Periods Ended Three Months Nine Months
 April 30 1993 1992 1993 1992
 Operating revenues
 Advertising $ 9,601 $ 8,653 $29,534 $24,693
 Subscriber 8,889 7,306 24,068 19,391
 Other 87 34 327 128
 Total 18,577 15,993 53,929 44,212
 Operating expenses
 Production and programming 6,575 6,127 19,774 16,548
 Marketing 3,129 2,031 8,738 5,794
 General and administrative 2,551 2,390 8,137 7,244
 Total 12,255 10,548 36,649 29,586
 Income from operations 6,322 5,445 17,280 14,626
 Nonoperating income (expense)
 Interest income 343 330 881 918
 Interest expense (239) (192) (783) (711)
 Equity losses of unconsolidated
 affiliates (64) (145) (243) (478)
 Income before income taxes 6,362 5,438 17,135 14,355
 Provision for income taxes (2,659) (1,985) (7,197) (5,684)
 Net income 3,703 3,453 9,938 8,671
 Net income per common share $ .18 $ .17 $ .48 $ .43
 Weighted shares outstanding 20,852 20,852 20,852 20,108
 BET HOLDINGS, INC.
 Segment Information
 (Unaudited -- In thousands)
 Periods Ended Three Months Nine Months
 April 30 1993 1992 1993 1992
 Revenues
 Cable network
 Advertising $ 9,230 $ 8,073 $27,722 $23,563
 Subscriber 8,347 6,877 22,760 18,645
 Other 7 25 138 108
 Total 17,584 14,975 50,620 42,316
 Magazine publishing
 Advertising $ 371 $ 580 $ 1,812 $ 1,130
 Subscriber 542 429 1,308 746
 Other 80 9 189 20
 Total 993 1,018 3,309 1,896
 18,577 15,993 53,929 44,212
 Expenses
 Cable network
 Production and programming 5,519 5,044 16,650 14,008
 Marketing 2,747 1,887 7,478 5,420
 General and administrative 1,910 2,188 6,439 6,894
 Total 10,176 9,119 30,567 26,322
 Magazine publishing
 Production and programming 1,056 1,083 3,124 2,540
 Marketing 382 144 1,260 374
 General and administrative 641 202 1,698 350
 Total 2,079 1,429 6,082 3,264
 12,255 10,548 36,649 29,586
 Income (loss) from operations
 Cable network 7,408 5,856 20,053 15,994
 Magazine publishing (1,086) (411) (2,773) (1,368)
 Total 6,322 5,445 17,280 14,626
 Other nonoperating, net 40 (7) (145) (271)
 Income before income taxes 6,362 5,438 17,135 14,355
 Depreciation & amortization
 Cable network
 Depreciation 756 440 2,295 1,279
 Amortization 820 416 2,309 1,322
 Magazine publishing
 Depreciation 7 14 21 25
 Total 1,583 870 4,625 2,626
 Capital expenditures
 Cable network 758 2,794 2,378 5,476
 Magazine publishing 1 1 11 14
 Total 759 2,795 2,389 5,490
 -0- 6/3/93
 /CONTACT: Lisa R. Anderson or Dannette A. Wills both of BET Holdings, Inc., 703-516-6423; or Diana Brainerd or Christian Plunkett both of the Abernathy MacGregor/Scanlon, Group, Inc., 212-371-5999, for BET Holdings, Inc./
 (BTV)


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

SH-SM -- NY006 -- 4837 06/03/93 09:41 EDT
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