MCA Posts Record Profits in 2nd Quarter, Six Months

MCA reported record earnings for the second quarter and first half of 1986 as nearly all of the giant entertainment conglomerate’s operations showed improvement.

The Universal City-based company said net income in the second quarter rose 129% to $28.16 million from $12.93 million the year before. Quarterly revenue was $522.73 million versus $416.38 million.

MCA reported first-half net income of $59.08 million, a 93% increase from 1985’s $30.67 million. First-half revenue was $1.04 billion, compared to $847.95 million last year.

Film entertainment showed significant improvement, MCA said, because increased theatrical distribution results more than offset decreased television results. The division also includes results of its equity interest in Cineplex Odeon, a movie theater chain that was acquired in May.

MCA’s newly restructured Music Entertainment division--which now includes results of the Universal Amphitheater along with record and music publishing operations--had increased operating income on slightly lower revenue for both periods, compared to 1985.

The music division posted second-quarter income of $4.69 million on revenue of $70.17 million, compared to $3.88 million on revenue of $70.27 a year before. The division’s results also included those of Facility Merchandising and Front Line Management, two companies formerly owned by music division President Irving Azoff. MCA acquired the companies in May for 500,000 shares of MCA common stock.

Retail and mail-order operations had improved results on lower revenue, while book publishing had slightly higher operating income on reduced revenue. Toy products continued to enjoy strong results, MCA said.