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BET HOLDINGS REPORTS SECOND QUARTER RESULTS

 BET HOLDINGS REPORTS SECOND QUARTER RESULTS
 WASHINGTON, March 6 /PRNewswire/ -- BET Holdings, Inc. (NYSE: BTV)


today announced the following results for its second fiscal quarter ended Jan. 31, 1992:
 BET HOLDINGS, INC.
 Second fiscal quarter Percent
 ended Jan. 31: 1992 1991 Change
 Revenues
 Advertising $8,500,000 $7,400,000 15
 Subscriber 6,400,000 5,200,000 23
 Other 100,000 100,000 --
 Total $15,000,000 $12,700,000 18
 Net income $2,900,000 $2,700,000 7
 Earnings per share $0.14 $0.14 --
 Weighted average number of
 shares outstanding 20,700,000 18,700,000
 Commenting on the company's performance, Robert L. Johnson, president an chief executive officer, said, "Our second quarter results reflect the continued upward momentum of our cable network which showed dramatic increases in national spot advertising and increased its subscriber base during the second quarter of fiscal 1992 from 29.0 million(A) to 29.5 million(A). Net income for the second quarter reflects start-up and production costs associated with developing our two magazines, Young Sisters & Brothers ("YSB") and Emerge; increased expenses for programming and marketing; and a one-time recovery of a $0.4 million receivable in 1991's second quarter that was previously considered uncollectible. Without the recovery of this receivable in 1991 and the costs associated with the development of our publishing operations in the second quarter, net income and earnings per share in 1992's second quarter would have risen 32 percent and 23 percent respectively to $3.3 million and $0.16. Johnson added, "The start-up and production costs associated with the magazines reflect our long-term commitment to extend the reach of our operations to the growing black population, therefore increase our value to advertisers."
 The company's 18 percent revenue gain for the second quarter of fiscal 1992, resulted from higher subscription and advertising revenues. Subscriber revenues increased $1.2 million, or 23 percent, from $5.2 million in the second quarter of fiscal 1991 to $6.4 million in the second quarter of fiscal 1992. Approximately $1.0 million of the subscriber revenue increase relate to Black Entertainment Television (the "BET Cable Network") while the remaining $0.2 million resulted from commencement of magazine publishing operations in fiscal 1992 which were not present in fiscal 1991. The increase in revenue of the BET Cable Network primarily resulted from annual increases in monthly subscriber fees as provided by BET's affiliation agreements, which provide for a subscriber rate increase of 16 percent for 1992's second fiscal quarter as compared to the second quarter of fiscal 1991.
 The cable network increased its subscriber base from 28.6 million(A) at July 31, 1991 and 29.0 million(A) at Oct. 31, 1991 to 29.5 million(A) at Jan. 31, 1992. Because several of the largest newly launched systems receive market support in the form of an initial free period of up to six months, the full financial impact of the newly launched systems will not be recognized until future periods. The level of launch support offered to new systems declined from the previous year as the BET Cable Network continued to improve its market presence.
 In spite of the continued recession in the advertising industry, total advertising revenues, including the magazines, increased $1.1 million or 15 percent, from $7.4 million in the second quarter of fiscal 1991 to $8.5 million in the second quarter of fiscal 1992. Advertising on the BET Cable Network increased 8 percent in 1992's second quarter with national spot advertising increasing 37 percent, while the company's other types of advertising revenue, including direct response advertising (which is more sensitive to the specific items advertised), declined by 13 percent.
 Johnson added, "BET Holdings' overall advertising revenue increase included $0.5 million from YSB and Emerge magazines. Both contributions offer insight into the early development of our publishing business. YSB was first published in August 1991, and Emerge was not consolidated until we acquired a controlling interest on Dec. 31, 1991."
 Production and programing expenses increased $1.9 million, or 48 percent, from $4.0 million in the second quarter of the prior year to $5.9 million in the second quarter of fiscal 1992. The increase in production and programming expenses resulted primarily from $1.1 million of production costs incurred in the publication of YSB and Emerge magazines. Also contributing to the increase was a $0.8 million increase in network production and programming expenses attributable to the company's continued improvement and expansion of its programming. Infomercials as a percentage of air time decreased by approximately 10 percent.
 Marketing expenses increased from $1.4 million in the second quarter of fiscal 1991 to $2.0 million in the second quarter of fiscal 1992, an increase of $.6 million, or 43 percent. The increase in marketing expenses was primarily attributable to a $.4 million increase in personnel and other operating expenses related to the BET Cable Network as the company continued to expand its advertising and affiliate marketing sales force. Also contributing to the increase were $.2 million in costs incurred in connection with the publication of both Emerge and YSB magazines.
 General and administrative expenses include costs associated with the corporate, legal and finance departments. The expenses increased from $2.1 million in the second quarter of fiscal 1991 to $2.3 million in the second quarter of fiscal 1992, an increase of $.2 million or 10 percent.
 Net income increased $0.2 million, or 7 percent, from $2.7 million in the prior year's second quarter to $2.9 million for the second quarter ended Jan. 31, 1992. Earnings per share were $0.14 for both the 1992 and 1991 second fiscal quarters, reflecting the shares issued in the company's November 1991 initial public offering. Net income for the second fiscal quarter of 1992 included a loss of approximately $0.6 million, before the related income tax benefit, released to YSB and Emerge magazines. The company expects to incur losses from these publications until the magazines are fully established.
 The results for 1991's second fiscal quarter included a one-time recovery of a $0.4 million receivable that was previously considered uncollectible. Absent the recovery of this receivable in 1991 and the loss of $0.6 million incurred by our publishing operations in 1992's second quarter, net income and earnings per share for 1992's second quarter would have risen 32 percent and 23 percent, respectively to $3.3 million and $0.16.
 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 reaches 29.5 million(A) subscribers. 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' subsidiary, Paige Publications, Inc., the company publishes YSB, a general lifestyle magazine aimed at black teenagers. BET Holdings also owns a 44 percent interest in Emerge Communications, Inc., the publisher of Emerge, a black, general interest magazine. In addition, BET Holdings owns an interest in United Image Entertainment, a production company which produces black-oriented programming, and Haricom, Inc., a black-owned advertising agency. 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 from cable television systems carrying the BET Cable Network.
 BET HOLDINGS, INC.
 Consolidated Statements of Income
 (unaudited)
 Period ended Three months Six months
 Jan. 31 1992 1991 1992 1991
 Operating revenues
 Advertising $ 8,521,028 $ 7,433,475 $16,040,151 $14,602,162
 Subscriber 6,414,526 5,157,068 12,084,958 9,540,924
 Other 61,246 76,070 94,070 119,815
 Total 14,996,800 12,666,613 28,219,179 24,262,901
 Operating expenses
 Production and
 programming 5,945,561 4,045,783 10,932,230 8,128,496
 Marketing 1,983,774 1,394,920 3,763,559 2,871,197
 General and
 administrative 2,252,708 2,071,820 4,400,145 4,133,391
 Total 10,182,043 7,512,523 19,095,934 15,133,084
 Income from
 operations 4,814,757 5,154,090 9,123,245 9,129,817
 Nonoperating income (expense)
 Interest income 408,276 174,779 588,201 350,430
 Interest expense (181,730) (429,953) (519,378) (858,848)
 Equity in losses
 of unconsolidated
 affiliates (164,072) (232,594) (332,697) (362,925)
 Income before
 income taxes 4,877,231 4,666,322 8,859,371 8,258,474
 Income taxes (2,026,282) (2,006,118) (3,698,782) (3,551,634)
 Minority interest
 in net loss
 of Emerge 57,456 -- 57,456 --
 Net income 2,908,405 2,660,204 5,218,045 4,706,840
 Net income per
 common share $ .14 $ .14 $ .26 $ .25
 Weighted average
 shares outstg. 20,738,034 18,749,800 19,743,917 18,749,800
 -0- 3/6/92
 /CONTACT: Lisa Anderson or Dannette Wills of BET Holdings, 703-516-6421, 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


SH-TO -- NY032 -- 5924 03/06/92 14:26 EST
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