Dividends for ducats

Ticketmaster posts $2 million profit

By ADAM SANDLER

Despite a lackluster concert business during the past 12 months, Ticketmaster posted profits of nearly $2 million (.08¢ a share) for the second quarter ended July 31, compared with a loss of $439 million (3¢ a share), in the year-ago period.

Revenues also jumped to $81.7 million from $53.2 million and represented a 53.5% increase over the 1997 fiscal tally, while operating income doubled to $6.9 million from the $3.1 logged in the last fiscal period.

"As we expand the ticketing business and broaden the base, the numbers reflect the underlying strength of our ticketing business," Fredric Rosen, prexy/CEO of Ticketmaster, told Daily Variety. "We've also reduced losses in publishing and increased our operating efficiency by using new technologies, which has helped to cut costs."

Drop in the bucket

When backdropped against the beginning of a second year of a relatively weak concert season, the strong earnings numbers illustrate that Ticketmaster's reliance on concert ticket sales is a small portion of its overall business.

Pre-tax income also rose, with more than $4.7 million landing in company coffers compared with less than $1 million in the fiscal 1997 second quarter.

Southeast buyout

In related news, Ticketmaster has also purchased for $9.5 million the one-third interest in Ticketmaster-Southeast held by Time-Warner.

The move gives Ticketmaster a two-thirds stake in the venture, with the remaining one-third interest continuing to be owned by Universal Concerts.

"With this transaction, Ticketmaster continues to make significant progress in its effort to consolidate its joint ventures and licensees," said Rosen.

Ticketmaster-Southeast sells nearly 4 million tickets a year in Georgia, North Carolina, South Carolina, Birmingham, Ala., and Chattanooga, Tenn.

The deal is the fourth this year in which Ticketmaster has acquired either full ownership or an increased stake in partially owned regional ticketing entities or licensees in the U.S. and Canada.

The positive earnings news helped Ticketmaster's stock rise 50¢ to $18.375 on Nasdaq.

Read the full article at:
http://www.variety.com/article/VR1116674997.html

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