ENTERTAINMENT : Paramount Posts a Loss of $7.3-Million in Quarter

Paramount Communications Co. posted a $7.3-million loss in its first quarter ended Jan. 31, reflecting weak performance in its entertainment division and lower-than-expected results from its publishing operations.

In the year-ago period, Paramount reported a net profit of $21.2 million, or 17 cents a share. Revenue for the latest quarter rose 6.2% to $897.1 million from $844.6 million a year ago.

Operating income from the New York-based company’s entertainment division fell 29.3% to $28.2 million from $39.9 million as several films performed poorly. Paramount said it had writedowns related to “Flight of the Intruder” and “Almost an Angel” during the period.

A 10Q quarterly income statement filed with the Securities and Exchange Commission late Friday did not list any writedowns associated with “The Godfather, Part III.” That film had ticket sales of about $65 million at the domestic box office, but analysts have speculated that Paramount may ultimately lose money on it because of heavy production and releasing costs.

Improved results from the company’s TVX Broadcast Group and 50%-owned USA cable network helped offset weak film performance and flat results from TV and theater operations.

Paramount’s publishing division posted a $40.8-million operating loss, compared to a $27.5-million loss in the year-earlier period. Publishing revenue rose 2.5% to $263.5 million from $257.1 million.

Publishing companies often post first-quarter losses because of seasonal variations in books sales. But Paramount said the book division suffered from decreased sales in its travel and reference unit and from lower hardcover book sales.

Paramount’s interest income decreased to $14.3 million for the quarter, compared to $37.9 million a year earlier.

On Tuesday, the company also declared its regular quarterly dividend of 17.5 cents per common share, payable April 1 to shareholders of record March 15.

The company owns Paramount Pictures Corp. in Los Angeles and the Simon & Schuster publishing group in New York, along with movie theaters, TV stations and other interests.