Sponsor (Oct-Dec 1964)

SPONSOR -WEEK Taft, Cox, Storer, Capital Cities Register Strong Gains in Profits Taft Profits Rise Cincinnati — A banner second quarter for Taft Broadcasting Co. has been reported with profits up from $348,067 in the same period the previous year to $738,158 as of Sept. 30. 1964. This represents a hike of 112 percent. First-half profits were also up. with net income increasing 108 percent to $1,989,765 from $913,813. In announcing the figures at a board of directors meeting, Hulbert Taft, Jr., board chairman, said: "The second fiscal quarter ended Sept. 30 continued the pattern established in the first; revenues and earnings more than doubled the same period last year. At the conclusion of the first half-year of operation of Taft Broadcasting Co. with its newly acquired stations, all seven broadcasting divisions are operating well ahead of last year." Taft added that "the continued improvement in the competitive position of the ABC Television Network and local program successes are the most important contributors to the over-all gains." Cox Reports 41 Percent Gain Atlanta — The profits picture is bright for Cox Broadcasting Corp. with a reported 41 percent increase in net income over the first nine months of 1964. The company's four tv stations and four AM-FM stations, plus other properties, recorded a consolidated net income of $2,110,189 for the first three quarters as compared with $1,497,250 during the same period last year. Revenues for the first nine months totaled $15,129,387. marking a 52 percent jump over last year's $9,970,248. In addition to its radio and tv operations. Cox owns CATV systems in Pennsylvania, Oregon and the state of Washington. Also, on Sept. 1 of this year, the company announced the purchases of tv station WIIC Pittsburgh, Pa. FCC approval is still pending. Profit Hike for Capital Cities New York — Still another indication of growth among the broadcast groups is the announcement that the nine-month profits of Capital Cities Broadcasting Corp. totaled $1,762,503, or 40 percent above the same period in 1963. It was pointed out that the 1964 figures included the newly acquired WJR Detroit and WSAZ Charleston-Huntington, W. Va., from Sept. 10. Also, as part of the transaction which brought the new stations to Capital Cities, the firm repurchased 78,285 of its own shares, reducing outstanding shares to 1,353,729. In releasing the earnings figures, Frank M. Smith, chairman, noted that New York Subways Advertising Co., in which Capital Cities has a 40 percent interest, has concluded its second fiscal year and that results were highly satisfactory, with further improvement expected CORRECTION Tv expenditure figures for Northeast Airlines were not tabulated in table VII on page 40 of this issue. Figures for Northeast are 1963 1964 NETWORK SPOT $485,600 628,300 TOTAL TV $485,600 628,300 PERCENTAGE Plus 29 Total expenditures at elude these figures. the bottom of table VII, however. do in Sulllivan Cancels Comic's Contract New York — Self-regulation in the broadcast industry became strictly a one-man affair last week when Ed Sullivan charged comic Jackie Mason with "obscene gestures on camera" and promptly canceled Mason's $45 thousand contract. Denying that his gambit with fingers was intended to be offensive. Mason countered with the threat of a lawsuit if the contract was canceled. In a formal statement, Bob Precht. producer of the Sullivan show, said the contract, which called for six appearances on the program, had been terminated as a result of "Mason's on-camera obscene gestures, offensive conduct, insubordination and gross deviation from material agreed upon on the telecast." If the case comes to court, both sides will have a nation's worth of witnesses to call. in the upcoming year. The Capital Cities' financial statement does not include revenues from New York Subways Advertising. Storer Profits Hit Record Miami — Storer Broadcasting Co. reports business is booming with announcement of nine-month profits totaHng $4,956,611 as compared with $3,998,826 for the same period in 1963. This represents a boost of 24 percent in profits and 35.2 percent in per-share profits. It was pointed out that the ninemonth figures were an all-time record for the company with respect to profit from operations, excluding non-recurring gains and losses. Storer's third-quarter profits marked a 28.5 percent increase, from $1,067,172 to $1,371,398. Operational earnings for both the quarter and nine months were the highest in the company's 37-year history. A company spokesman said the increase reflected primarily the growth of tv station profits and a substantial increase in profits from Storer's radio station, WHN New York, acquired in January. 1962. 20 SPONSOR