Tv Helps Viacom To 32 Per Cent Advance

Although recorded music suffered in keeping with the industry-wide trend, MTV and Paramount set the pace in the quarter, in which television interests increased operating cash flow 14 per cent to $211 million on revenues up 18 per cent at $650 million.

The entertainment division, powered by Paramounts international successes with Mission: Impossible and the domestic success of First Wives Club, increased cash flow a more modest 10 per cent to $79 million, while revenues rose 17 per cent to $865 million. Film results showed the effects of continuing increases in marketing costs, while musics problems dented the performance at Blockbuster, the groups troubled international video and music rental and retail business.

 

Revenues at the division embracing music, videos and theme parks rose 14 per cent to $1.1 billion, mainly because of a four per cent increase in the number of video outlets and improved same-store business.

However, operating cash flow was only one per cent higher at $194 million. In a further cost-saving, Blockbuster on Thursday announced plans to move its headquarters from Dallas to Fort Lauderdale, Florida.

Plans to close 10 per cent of its music shops and other restructuring moves last month have been well received on Wall St, which sees Bill Fields, the Blockbuster chief recruited from Wal-Mart, as having made a good start.