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'edTV' hurts Seagram
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May 6, 1999: 10:05 a.m. ET
Canadian giant blames film unit, comedy for 3Q loss, 4Q weakness
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NEW YORK (CNNfn) - Seagram Thursday blamed poor results in its film unit -- particularly from the comedy disappointment "edTV" -- for a loss in the third quarter of its fiscal year and expected losses for the fourth quarter and full year.
Seagram (VO) suffered a loss of $199 million, or 50 cents a diluted share, in the quarter ended March 31, compared with net earnings of $461 million, or a $1.32 a share, in the year-earlier period.
Still, the latest quarter loss was not as severe as the 54 cents a share loss analysts' consensus, earnings tracker First Call Corp said.
The year-earlier period included gains from transactions involving USA Networks and the sales of some shares of Time Warner. Excluding one time items, the company lost $21 million, or 6 cents a share.
Revenue rose to $3.2 billion compared to $1.9 billion in the year-earlier period.
In its poor-performing film unit, Seagram said the weakness of "edTV," a comedy directed by Ron Howard and starring Matthew McConaughey, could have an effect into the current fourth quarter and for the full fiscal year.
"In our film entertainment business, the poor response to 'edTV' materially diminished our outlook for the fourth quarter and the year," Chief Executive Officer Edgar Bronfman, Jr said. "Even though we expect improved box office results, we anticipate a loss in the fourth quarter in line with the loss we just reported for the third quarter, and it will be several quarters before our film business returns to profitability."
Seagram, however, said it was pleased with revenue increases at its music, recreation and spirits business.
Further, Seagram said its new theme park at Universal Studios Escape in Orlando, Florida - Islands of Adventure - should be well-received when it opens later this month.
For the nine months ended March 31, Seagram earnings rose to $739 million, or $2 a diluted share, from $622 million, or $1.76 a share, a year earlier. Revenue rose to $8.78 billion from $7.37 billion.
Seagram shares Wednesday gained 1-1/16 to 58-15/16. 
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Seagram
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