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BLOCKBUSTER ANNOUNCES RECORD SECOND QUARTER RESULTS: NET INCOME UP 59 PERCENT; REVENUE UP 72 PERCENT

 FORT LAUDERDALE, Fla., July 21 /PRNewswire/ -- Blockbuster Entertainment Corporation (NYSE: BV), a leading entertainment company, today announced record second quarter revenue and net income.
 For the three months ended June 30, 1993, net income increased 59 percent to $47,662,000, or 23 cents per share, from $29,968,000, or 17 cents per share, reported for the same period in 1992. Net income for the first six months of 1993 increased 56 percent to $86,855,000, or 43 cents per share, as compared to $55,648,000, or 31 cents per share, for the first six months in 1992.
 Company revenue for the three months ended June 30, 1993 was $456,100,000 as compared to $264,608,000 for the same period in 1992, an increase of 72 percent. Company revenue for the first six months of 1993 was $847,189,000, an increase of 63 percent over the $518,575,000 reported for the first six months of 1992.
 Systemwide revenue (consisting of all revenue generated by the company and its franchise-owned video stores) for the three months ended June 30, 1993 was $654,117,000, an increase of 46 percent over the $448,067,000 reported for the same period in 1992.
 For the first six months of 1993, systemwide revenue increased 41 percent to $1,262,801,000 from $894,455,000 for the comparable period a year ago.
 H. Wayne Huizenga, Blockbuster chairman and chief executive officer, commented that "The company's operating performance continued to be outstanding. Revenue and operating income from the company's domestic and international home video operations increased significantly, with same-store revenue rising by 5.4 percent for stores in operations for more than one year. Our music operations also made a more significant contribution as we started to realize the benefits of cross- merchandising opportunities and the elimination of excess overhead. The company's programming and distribution business also contributed to revenue and net income in line with our expectations."
 Developments during the second quarter included the company's acquisition of a 21.3 percent interest in Discovery Zone, Inc. Discovery Zone owns and franchises indoor children's recreational fitness centers known as FunCenters. In addition, the company acquired franchise rights to develop 50 Discovery Zone FunCenters in the United States and formed a joint venture with Discovery Zone to develop 10 FunCenters in the United Kingdom.
 Also during the quarter, Blockbuster opened its first family entertainment center in Sunrise, Fla. and formed a joint venture with IBM to develop and market a system to transmit digitized entertainment products.
 As announced earlier this month, Blockbuster reached agreements in principle to acquire the businesses of its two largest franchisees. Upon the closing of these acquisitions, the company will own and operate an additional 321 Blockbuster Video stores and hold the franchise rights to develop and operate 50 additional Discovery Zone FunCenters in several areas of the southeastern United States.
 As of June 30, 1993, there were 3,258 stores in the Blockbuster video division operating in 48 states and nine other countries. Of that total, 1,134 were franchise-owned and 2,124 were company-owned (including stores operated by Cityvision under the Ritz name in the United Kingdom). The Blockbuster music division includes 237 Sound Warehouse and Music Plus stores operating in 40 metropolitan areas in the United States, and 15 Megastores operating throughout Continental Europe, Australia and the United States owned by a joint venture with the Virgin Retail Group. The company also owns approximately 63.5 percent of Spelling Entertainment Group Inc. and approximately 37 percent of Republic Pictures Corporation, leading producers and distributors of filmed entertainment.
 Following is a summary of operating results for the three-month and six-month periods ended June 30, 1993 and 1992.
 BLOCKBUSTER ENTERTAINMENT CORPORATION AND SUBSIDIARIES
 UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 (In thousands, except per share data)
 Three Months Ended Six Months Ended
 June 30, June 30,
 1993 1992 1993 1992
 Systemwide Revenue $654,117 $448,067 $1,262,801 $894,455
 Revenue $456,100 $264,608 $847,189 $518,575
 Operating Costs
 and Expenses 376,317 216,014 700,720 426,749
 Operating Income 79,783 48,594 146,469 91,826
 Other Expense, Net 4,725 1,187 9,689 3,496
 Income before
 Income Taxes 75,058 47,407 136,780 88,330
 Provision for
 Income Taxes 27,396 17,439 49,925 32,682
 Net Income $47,662 $29,968 $86,855 $55,648
 Net Income per Common
 and Common Equivalent
 Share -- assuming
 full dilution $0.23 $0.17 $0.43 $0.31
 -0- 7/21/93
 /CONTACT: Gregory K. Fairbanks of Blockbuster Entertainment Corporation, 305-832-3000/
 (BV)


CO: Blockbuster Entertainment Corporation ST: Florida IN: ENT REA SU: ERN

AW-RC -- FL003 -- 4232 07/21/93 19:09 EDT
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Date:Jul 21, 1993
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