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PARAMOUNT COMMUNICATIONS REPORTS FISCAL 1993 FIRST QUARTER RESULTS

 NEW YORK, March 10 /PRNewswe?/ -- Paramount Communications Inc. (NYSE: PCI) today reported lower earnings for the first quarter of fiscal 1993, ended Jan. 31. Net earnings for the quarter of $0.9 million, or one cent per share, compared with $18.4 million, or 16 cents per share, in the first three months of fiscal 1992.
 The company said that the weak performance of film releases in the first quarter of fiscal 1993 resulted in lower operating income from entertainment, despite substantially higher contributions from television programming operations. Paramount previously announced in early January that comparisons with its exceptional fiscal 1992 first- half motion picture results would be unfavorable.
 Seasonal losses in publishing, in line with expectations, were about equal to the corresponding period last year. Educational publishing, which normally contributes the majority of annual publishing revenues, records most of its sales and all of its operating income in the second half of the year, corresponding to the typical school year buying cycle.
 Looking beyond the first six months, Paramount said that it expects earnings momentum to build in the second half of fiscal 1993, led by strength in educational and consumer publishing and a resurgence in entertainment, beginning in the third quarter and extending into fiscal 1994. The company cited a promising slate of films such as "Indecent Proposal," "Sliver," "The Firm," "Coneheads," "Addams Family Values," "Wayne's World II" and "Intersection;" a proven television programming lineup that includes "Cheers," "Wings" and "Bob" on network stations and 20 1/2-hours of first-run syndication programming led by "Star Trek: The Next Generation," "Star Trek: Deep Space Nine" and "Entertainment Tonight;" as well as contributions from its theme parks, which begin operations for the season in the second quarter.
 Results in the first quarter of fiscal 1993 also included net interest and other investment expense of $1.5 million, compared with net interest and other investment income of $2.0 million in the same year- earlier period. The decline largely reflects lower average cash equivalents and short-term investments resulting from acquisitions, the repurchase of shares of the company's common stock and the funding of working capital requirements. Lower average interest rates also contributed to the decline.
 Television programming operations in the first quarter of fiscal 1993 benefited primarily from the licensing of "Wings" to USA Network (jointly owned by the company with MCA), increased contributions from "Star Trek: The Next Generation" and "Entertainment Tonight" in first- run syndication and higher syndication sales of the original "Star Trek" series and "Happy Days."
 USA Networks recorded lower operating income in the fiscal 1993 first quarter resulting from start-up costs associated with its successful launch of the Sci-Fi Channel in September 1992. Home video operations declined as domestic sales of "Patriot Games" and "Boomerang" did not match the strong performance in the year-earlier period of "Ghost" in foreign markets and "The Naked Gun 2-1/2: The Smell of Fear" in domestic markets.
 Entertainment results in the first quarter also reflected lower operating income from the company's television broadcast stations and theatrical exhibition operations, as well as declines at Madison Square Garden. Theme parks, which were acquired in the fourth quarter of fiscal 1992, registered a modest loss for the period.
 Paramount Publishing recorded higher seasonal operating losses in elementary and secondary education, stemming primarily from higher selling and marketing costs to support planned growth and increased state adoption opportunities. These results more than offset contributions from higher education, where operating income was about equal to the prior year period.
 In other publishing areas, losses in consumer publishing, in line with the seasonality of book-selling cycles, approximated the year- earlier period. Business, technical and professional operations posted an improved performance and international publishing recorded a modest loss versus a slight gain.
 Revenues for the fiscal 1993 first quarter totaled $943.7 million, compared with revenues of $1.1 billion recorded in the same quarter last year.
 PARAMOUNT COMMUNICATIONS INC.
 Summary of Earnings Information
 (In millions, except per share)
 Three months ended Jan. 31, 1993 1992
 REVENUES $ 943.7 $ 1,070.6
 NET EARNINGS - after provision
 for inc. taxes of $0.5 for 1993
 and $8.7 for 1992 0.9 18.4
 Average Common & Common
 Equivalent Shares Outstanding 118.4 118.6
 Net Earnings Per Share $ .01 $ .16
 -0- 3/10/93 R
 /CONTACT: Carl Folta of Paramount, 212-373-8530/
 (PCI)


CO: Paramount Communications Inc. ST: New York IN: ENT SU: ERN SH -- NY010R -- 4861 03/10/93 10:20 EST
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Publication:PR Newswire
Date:Mar 10, 1993
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