Seagram Earnings Decline 13% Despite Improvement at Music Unit
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MONTREAL — Seagram Co. said fiscal second-quarter earnings fell 13% as revenue declined at its spirits and wine division.
The beverage, liquor and entertainment company said net income fell to $161 million, or 43 cents a share, for the quarter ended Dec. 31, compared with profit from operations of $185 million, or 43 cents a share, a year earlier.
Seagram sells wines and spirits, fruit juices under the Tropicana and Dole labels, and owns 80% of film, music and theme-park company Universal Studios Inc. Seagram shares eased 12.5 cents to $39.50 on the New York Stock Exchange on Wednesday.
The Montreal-based company said revenue from its entertainment group increased 13% from “a significant improvement in music.” The group’s revenue of $1.85 billion included a pretax gain of $64 million on the sale of Universal’s book-publishing unit. Filmed entertainment revenue fell 1% to $999 million.
Seagram said its share of the U.S. music market rose to 13.7% from 8.7% in 1995. “We do not expect to uphold this share for the full year ending in June as our upcoming release schedule is not as strong as last year,” said Chief Financial Officer Robert Matschullat.
The company expects several big movies to boost Universal Studios’ earnings this year, including the “Jurassic Park” sequel “Lost World.”
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