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BET HOLDINGS REPORTS SECOND QUARTER RESULTS; NET INCOME INCREASES 14 PERCENT ON REVENUE INCREASE OF 20 PERCENT

 WASHINGTON, March 4 /PRNewswire/ -- BET Holdings, Inc. (NYSE: BTV), parent company of Black Entertainment Television, Inc., which operates the BET Cable Network, today announced the following results, in millions of dollars (except per share data and outstanding shares data), for its second fiscal quarter ended Jan. 31, 1993:
 Three months ended Jan. 31 1993 1992 Percent Change
 Revenues
 Advertising $10.2 $ 8.5 20
 Subscriber 7.8 6.4 22
 Other .0 .1 (100)
 Total 18.0 15.0 20
 Income from operations 5.8 4.9 18
 Net income 3.3 2.9 14
 Earnings per share $.16 $.14 14
 Weighed average number of shares
 outstanding (thousands) 20,852 20,738 --
 Six months ended Jan. 31 1993 1992 Percent Change
 Revenues
 Advertising $19.9 $16.0 24
 Subscriber 15.2 12.1 26
 Other .3 .1 200
 Total 35.4 28.2 26
 Income from operations 11.0 9.2 20
 Net income 6.2 5.2 19
 Earnings per share $.30 $.26 15
 Weighed average number of shares
 outstanding (thousands) 20,852 19,744 --
 Commenting on the results, Robert L. Johnson, president and chief executive officer, said, "The solid increases reflected in BET Holdings, Inc.'s second fiscal quarter ended Jan. 31, 1993 continue to demonstrate the strength of BET Holdings as a growing media company. We have good news to report from many areas of our operations, including financial performance, subscriber growth, subscriber rates and in our publications businesses. Our operating revenues increased 20 percent with advertising revenue increasing 20 percent and subscriber revenue increasing 22 percent. We are particularly pleased that the consolidated financial performance for the second fiscal quarter of 1993 resulted in a 30 percent increase in earnings before interest, taxes, depreciation and amortization and a 14 percent increase in net income."
 The BET Cable Network also continued its progress in the renegotiation of its new ten-year rate card with 50 of its current affiliates (including Tele-Communications, Inc., the nation's largest cable television operator) having signed on the new rate card as of March 3, 1993, representing a total of 31 percent of the BET Cable Network's subscribers. Subscribers for the BET Cable Network also continued to increase with billable subscribers growing from 30.4 million at the end of the first fiscal quarter of 1993 to 31.0 million at the end of the second fiscal quarter of 1993(A).
 BET Holdings' overall advertising revenues increased $1.7 million, or 20 percent, to $10.2 million in the second fiscal quarter of 1993 from $8.5 million in the second fiscal quarter of 1992. The company's overall subscriber revenue increased $1.4 million, or 22 percent, to $7.8 million in the second quarter of fiscal 1993 from $6.4 million in the second quarter of fiscal 1992.
 For the BET Cable Networ,? advertising revenue increased $1.6 million, or 20 percent to $9.6 million from $8.0 million. This increase in advertising revenue was due to a 17 percent increase in national spot advertising and a 22 percent increase in direct response advertising. Advertising revenues from the company's magazine publishing operations increased 20 percent, or $.1 million, to $.6 million for the second fiscal quarter of 1993 from $.5 million for the comparable quarter a year ago. This was partially due to YSB magazine's initial publication in the first quarter of fiscal 1992 and to the company's consolidation of Emerge Communications, Inc.'s (ECI's) results of operations into those of the company's beginning Dec. 31, 1991.
 The BET Cable Networks' subscriber revenues increased $1.2 million, or 19 percent, or $7.4 million in the second fiscal quarter of 1993 from $6.2 million for the second fiscal quarter of 1992 primarily as a result of a 14 percent increase in the BET Cable Network's monthly per subscriber fee, and a 5 percent increase in the average number of subscribers reported to the BET Cable Network by its cable affiliates during the second quarter of fiscal 1993 to 30.8 million from 29.2 million(A) in the comparable quarter a year ago.
 Production and programming expenses for BET Holdings increased $1.1 million, or 20 percent, to $6.7 million in the second quarter of fiscal 1993 from $5.6 million in the second quarter of fiscal 1992. This total increase resulted primarily from a 26 percent, or $1.2 million, increase in the BET Cable Network's production and programming expenses.
 Contributing to the $1.2 million increase were a $.3 million increase in personnel and related benefit costs due to the BET Cable Network's expansion of its original programming fare, $.3 million related to the amortization of program rights for "Triple Threat," a variety game show acquired in September 1992, and $.6 million related to an increase in direct costs associated with production and programing. The resulting increase in production and programing costs for BET Holdings was partially offset by a $.1 million decrease in production costs incurred by the magazines from $1.0 million in the second quarter of fiscal 1992 to $.9 million in the second quarter of fiscal 1993.
 BET Holdings' marketing expenses increased 40 percent, or $.8 million, to $2.8 million in the second fiscal quarter of 1993 from $2.0 million in the second quarter of fiscal 1992. Of this increase, $.3 million related to increases in sales personnel and related benefit costs as a result of the BET Cable Network's expansion of affiliate and advertising marketing, $.2 million related to general increases in operating expenses for the BET Cable Network and a $.3 million increase of marketing expenses incurred in connection with the company's magazine operations.
 General and administrative expenses for BET Holdings increases 8 percent, or $.2 million, to $2.7 million in the second quarter of fiscal 1993 for $2.5 million in the second quarter of fiscal 1992. The $.2 million increase resulted from a $.2 million decrease in general and administrative expenses for the BET Cable Network which was offset by a $.4 million increase in general and administrative expenses for the magazines. The $.2 million decrease in general and administrative expenses is attributable to $.3 million of unauthorized payments for goods and services in the second quarter of fiscal 1992 that were not received by the company. Partially offsetting this $.3 million decrease is a $.1 million increase attributable to increases in office operating expenses as a result of the overall growth of the company.
 The company's $.9 million, or 18 percent increase in income from operations to $5.8 million in the second quarter of fiscal 1993 from $4.9 million in the second quarter of fiscal 1992 was adversely affected by losses form the company's publishing operations, which increased 60 percent, or $.3 million, to $.8 million in the second fiscal quarter of 1993 from $.5 million for the second fiscal quarter of 1992 partially due to the consolidation of ECI beginning Dec. 31, 1991. BET Holdings anticipates the losses related to YSB and Emerge will continue until the magazines are fully established.
 Due to the company's performance in the second fiscal quarter of 1993, BET Holdings, Inc.'s net income increased 14 percent, or $.4 million, to $3.3 million form $2.9 million over the comparable quarter for 1992.
 Revenues for the six month period ending Jan. 31, 1993 increased 26 percent form the comparable period a year ago. The company's advertising revenue for this period was up 24 percent and subscriber revenue up 26 percent. Production and programming expenses increased 27 percent and marketing expenses increased 47 percent. Net income increased to $6.2 million, an increase of $1.0 million, or 19 percent for the six month period ended Jan. 31, 1993 from $5.2 million for the comparable 1992 period.
 Attached to this press release is a table detailing segment information of the company's operations.
 BET Holdings, Inc. operates the BET Cable Network, the nation's first and only advertiser supported basic cable network that specially targets the viewing interests and concerns of black Americans. Cablecasting 24-hours per day, the BET Cable Network reached approximately 31 million subscribers (see note A) as of Jan. 31, 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 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.
 BET HOLDINGS, INC.
 Consolidated Statements of Income
 (Unaudited -- In thousands, except per share amounts)
 Periods Ended Three Months Six Months
 Jan. 31 1993 1992 1993 1992
 Operating revenues
 Advertising $10,211 $ 8,521 $19,933 $16,040
 Subscriber 7,764 6,415 15,179 12,085
 Other 65 61 240 94
 Total 18,040 14,997 35,352 28,219
 Operating expenses
 Production & programming 6,690 5,633 13,199 10,421
 Marketing 2,819 1,984 5,609 3,763
 General & administrative 2,716 2,508 5,586 4,854
 Total 12,225 10,125 24,394 19,038
 Income from operations 5,815 4,872 10,958 9,181
 Non-operating income (exp.)
 interest income 281 408 538 588
 Interest expense (267) (181) (544) (519)
 Equity losses of unconsolidated
 affiliates (68) (164) (179) (333)
 Income before income taxes 5,761 4,935 10,773 8,917
 Provision for income taxes (2,439) (2,027) (4,537) (3,699)
 Net income 3,322 2,908 6,236 5,218
 Net income per common $.16 $.14 $.30 $.26
 Weighted average shares 20,852 20,738 20,852 19,744
 BET HOLDINGS, INC.
 Segment Information
 Periods Ended Three Months Six Months
 Jan. 31 1993 1992 1993 1992
 (In thousands)
 (Unaudited)
 Revenues
 Cable Network
 Advertising $ 9,605 $ 8,048 $18,492 $15,490
 Subscriber 7,399 6,162 14,413 11,768
 Other 25 53 131 83
 Total 17,029 14,263 33,038 27,341
 Magazine Publishing
 Advertising 606 474 1,441 551
 Subscriber 365 252 766 316
 Other 40 8 109 11
 Total 1,011 734 2,316 878
 18,040 14,997 35,352 28,219
 Expenses
 Cable Network
 Production and programming 5,751 4,630 11,131 8,964
 Marketing 2,446 1,872 4,731 3,533
 General and administrative 2,237 2,403 4,529 4,706
 Total 10,434 8,905 20,391 17,203
 Magazine Publishing
 Production and programming 939 1,003 2,068 1,457
 Marketing 373 112 878 230
 General and administrative 479 105 1,057 148
 Total 1,791 1,220 4,003 1,835
 12,225 10,125 24,394 19,038
 Inc. (loss) from Operations
 Cable network 6,595 5,358 12,645 10,138
 Magazine publishing (780) (486) (1,687) (957)
 Total 5,815 4,872 10,958 9,181
 Other non-operating, net (54) 63 (185) (264)
 Income before income taxes 5,761 4,935 10,773 8,917
 Depreciation & Amortization
 Cable Network
 Depreciation 746 429 1,539 839
 Amortization 797 484 1,489 906
 Magazine Publishing
 Depreciation 7 11 14 11
 Total 1,550 924 3,042 1,756
 Capital Expenditures
 Cable network 1,008 1,839 1,620 2,682
 Magazine publishing 10 13 10 13
 Total 1,018 1,852 1,630 2,695
 NOTE: (A) subscriber numbers are based on reports to the company form cable television system carrying the BET Cable Network.
 -0- 3/4/93
 /CONTACT: Lisa R. Anderson or Dannette A. Wills of BET Holdings, 703-516-6423; or Diana Brainerd or Christian Plunkett of the Abernathy/MacGregor Group, 212-371-5999, for BET Holdings/
 (BTV)


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

AH-TB -- NY052 -- 3015 03/04/93 12:54 EST
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