In announcing the completion of its acquisition of 80% of MCA Inc. for $5.7 billion June 5, Seagram detailed MCA’s earnings for the past three years for the first time.
The figures showed how, apart from the “Jurassic Park”-inflated year of 1993, Universal Pictures’ earnings have lagged behind those of MCA’s music division in recent years.
While Universal was by far the biggest contributor to MCA’s revenues, generating $2.7 billion last year compared with only $1.2 billion from music, $245 million from recreation and little more from books, Universal had cash flow of only $118 million last year.
Music generated $199 million in cash flow last year, however, while recreation (MCA’s theme parks) had $70 million and book publishing had $32 million.
In 1993, the year U released “Jurassic,” its cash flow was $160 million compared with $151 million from music and $95 million from recreation.