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Paramount, Blockbuster Help Viacom Post Quarterly Profit

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From Times Wire Services

Viacom Inc. posted a profit for the first quarter of 1995, rebounding from a loss a year ago. It cited strong performances by its Paramount movies, Blockbuster video rentals and MTV cable network business.

For the three months ended March 31, the company earned $56.2 million, or 15 cents a share, contrasted with a loss of $454 million, or $3.59 a share, in the same period a year earlier.

The results exceeded expectations on Wall Street, which pushed Viacom’s Class A shares up $1.125 to $48.50 on the American Stock Exchange.

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Viacom officials said the performance reflects the successful integration of the Paramount Pictures, Blockbuster Video and Simon & Schuster publishing operations into Viacom’s businesses, led by the MTV and Showtime cable networks.

The company’s cable television system business, which is up for sale, also improved, and it had a smaller loss from publishing in the quarter.

Viacom’s earnings improved in comparison to what it reported for the first quarter last year, when Paramount was included for only a month, as well in comparison to pro forma calculations of what it would have earned if Paramount and Blockbuster were part of Viacom for all of 1994.

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Viacom won control of Paramount Communications Inc. in March, 1994, and acquired Blockbuster Entertainment Corp. about six months later.

The company said revenue during the first quarter climbed to $2.7 billion, up 25% from pro forma revenue of $2.15 billion during the same period in 1994. Viacom reported actual revenue of $838 million for the quarter a year ago, including a month from Paramount.

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