You will be redirected back to your article in seconds

Par profit slips in 2nd quarter

As if it didn’t have enough to worry about, Paramount Communications Inc.’s second-quarter profits fell almost 7% to $ 96.8 million, or 80 cents per share, as poor film performance and higher expenses weighed on the bottom line.

That decline from last year’s comparable $ 102.4 million (86 cents per share) was a full 25 cents below analysts’ mean estimate and dead even with their lowest forecast. But as one Wall Street wag pointed out, “Who cares about that when someone will pay $ 90 a share and up for the stock?” Par shares closed up 75 cents at $ 81.13.

Revenues grew nearly 16% to $ 1.39 billion last quarter from the comparable period of fiscal 1993, helped by a 6% increase in publishing income to a record $ 132.1 million.

Operating income in the entertainment division dropped about 16% to $ 45.3 million last quarter. The pic unit took a loss after writedowns on “Searching for Bobby Fischer,””The Thing Called Love” and “Bopha!” despite gains from “Indecent Proposal,””Sliver” and “The Firm.”

Operating income at the homevideo division also dipped, but earnings rose at theme parks, theaters, TV programming operations and TV stations.

Paramount said it expects “Wayne’s World 2” to bolster its movie biz, noting the pic’s opening weekend B.O. gross of $ 13.5 million. It also touted a promising outlook for 1994 releases, including “Intersection” and “Beverly Hills Cop III.”

Net interest and other investment expense rose to $ 8.1 million, due to acquisitions and lower returns on some investments.

Separately, Moody’s Investors Service cut Paramount’s long-term debt rating to A3 from A2 and lowered its short-term rating to Prime-2 from Prime-1. The agency continues to review Par’s ratings for possible further downgrade and said its combination with either Viacom Inc. or QVC Network Inc. — barring additional equity partners — could result in a speculative grade or “junk” rating.

“The downgrade is based on the fact that a business combination with either (bidder) demonstrates Paramount’s willingness to incur substantially higher financial risks,” Moody’s associate director Richard Stephan and analyst Gery Sampere reported.

More Biz

  • Sky takeover. Undated file photo of

    Comcast Faces More Battles After Winning the Fight for Sky

    As if it didn’t have enough to worry about, Paramount Communications Inc.’s second-quarter profits fell almost 7% to $ 96.8 million, or 80 cents per share, as poor film performance and higher expenses weighed on the bottom line. That decline from last year’s comparable $ 102.4 million (86 cents per share) was a full 25 […]

  • Richard Parsons. Ricard Parsons attends the

    Richard Parsons Named Interim Chairman of CBS' Board of Directors

    As if it didn’t have enough to worry about, Paramount Communications Inc.’s second-quarter profits fell almost 7% to $ 96.8 million, or 80 cents per share, as poor film performance and higher expenses weighed on the bottom line. That decline from last year’s comparable $ 102.4 million (86 cents per share) was a full 25 […]

  • Jon Platt Martin Bandier

    Jon Platt to Officially Succeed Martin Bandier at Sony/ATV Music Publishing

    As if it didn’t have enough to worry about, Paramount Communications Inc.’s second-quarter profits fell almost 7% to $ 96.8 million, or 80 cents per share, as poor film performance and higher expenses weighed on the bottom line. That decline from last year’s comparable $ 102.4 million (86 cents per share) was a full 25 […]

  • John Malone

    What Does a Two-Headed SiriusXM/Pandora Giant Mean for the Radio Industry?

    As if it didn’t have enough to worry about, Paramount Communications Inc.’s second-quarter profits fell almost 7% to $ 96.8 million, or 80 cents per share, as poor film performance and higher expenses weighed on the bottom line. That decline from last year’s comparable $ 102.4 million (86 cents per share) was a full 25 […]

  • Bill Cosby arrives for his sentencing

    Bill Cosby's Downfall the Result of Small Decisions and Big Culture Shift

    As if it didn’t have enough to worry about, Paramount Communications Inc.’s second-quarter profits fell almost 7% to $ 96.8 million, or 80 cents per share, as poor film performance and higher expenses weighed on the bottom line. That decline from last year’s comparable $ 102.4 million (86 cents per share) was a full 25 […]

  • The Ozzy Osbourne-AEG Lawsuit Is Over,

    The Ozzy Osbourne-AEG Lawsuit Is Over, But the War of Words Rages On …

    As if it didn’t have enough to worry about, Paramount Communications Inc.’s second-quarter profits fell almost 7% to $ 96.8 million, or 80 cents per share, as poor film performance and higher expenses weighed on the bottom line. That decline from last year’s comparable $ 102.4 million (86 cents per share) was a full 25 […]

More From Our Brands

Access exclusive content