Reuters : Seagram Posts Quarterly Loss after PolyGram Dealjeudi 11 février 1999
Source : Reuters
Condensed from Reuters :
Seagram Posts Quarterly Loss after PolyGram Deal
MONTREAL (Reuters) - Canadian entertainment and drinks concern Seagram Co. reported a $226 million second-quarter loss Thursday, after taking a $405 million pretax charge on its $10.4 billion acquisition of music and film group PolyGram NV.
Montreal-based Seagram said its net loss for the second quarter, ended Dec. 31, was $0.62 a share, fully diluted.
That compared with a net profit of $28 million or $0.08 a share in the 1997 quarter. Revenues were $3.3 billion, up from $3 billlion a year earlier.
Before the restructuring charge on the integration of PolyGram into its Universal Studios Inc. unit, Seagram’s net income from continuing operations was $18 million, or $0.05 a share. That’s down from a profit of $58 million, or $0.17 a share, a year earlier, excluding a charge on the company’s wine and spirits operations in Asia.
Seagram’s quarterly profit from continuing operations was slightly higher and the PolyGram charge was much lower than what the company had forecast eight weeks earlier.
Including PolyGram’s results, Universal Music Group’s second -quarter revenues jumped to $2.2 billion from $2 billion, while cash flow rose 17 percent to $451 million from $385 million.
Music profits were boosted by the strong album sales of stalwart Irish rockers U2 and Canadian country music singer Shania Twain.
Seagram’s spirits and wine group, which makes brands such as Chivas Regal whisky and Martell cognac, recovered after months of anaemic results.