Broadcasting Telecasting (Apr-Jun 1957)

FILM mainder mostly accounted for by motion pictures under MGM trademark. Of film earnings, foreign revenues account for about 40%. Earnings have declined even though rental income from the leasing of old MGM films to tv has been included for second quarter of fiscal 1957. Major problem seems to be an inability to turn out sufficient top-flight films to make its production activities profitable. Improvement in Loew's financial status can be expected to be slow but the company gradually is building up a solid core of earning power from its theatre business and film rentals. "Rising tv rentals and more ambitious film production schedules" could increase revenues to an annual average $210 million in the hypothetical economic environment of 1960-62. Paramount Pictures — Among the majors, this is the holdout of feature product to tv. About 50% of its total revenues are derived abroad. Company appears attractively priced relative to its asset value. Should the sale of the fully-amortized film library materialize, prospective net capital gain would lift the stock's book value to at least $55 (from $33). Projection of annual income to 196062 economy: $150 million. Twentieth Century-Fox — Primarily a producer and distributor of feature films, the firm owns Cinemascope and has 50% interest in NTA Film Network. Last year the company did not realize any profit from its principal business of motion picture production but derived its showing in earnings from "secondary" sources. The latter are likely to make larger contributions to overall profits this year. Secondary sources include tv, oil wells and foreign theatre subsidiaries. Company this year will be obtaining more than $1 a share net income from leasing tv rights to its old films and may share some of the profits from NTA Film Network. Twentieth Century-Fox also is "stepping Guild Films Climb Described by Kaufman GUILD FILMS Co. stockholders, who last year learned to their sorrow that the company had made only about an $8,000 net profit, came in for some very happy news Saturday as Guild President Reuben R. Kaufman announced that the firm for the first three months of the current fiscal year (December 1956 and January-February 1957) showed a profit of $155,349,49. At the stockholders' meeting, held in New York's Hotel Delmonico, Mr. Kaufman also reported that sales for the first six months of the current fiscal year (Dec. 1, 1956-Nov. 30, 1957) came to $10 million, meaning that for the first half of the year, Guild increased by approximately 320% the total 1956 sales volume of $3.5 million. Furthermore, he expressed every confidence that sales might touch $20 million by Nov. 30. The profit picture also looks very healthy. Mr. Kaufman told the shareholders, because of the very nature of these sales. Since the sales made to date will be played off during the next five and a half years, net profits — "barring unforeseen developments" — will in all probability be maintained in the future, he said. Guild's inventory, Mr. Kaufman went on, now covers virtually all types of programming. In the can are 230 musicals films (e.g., Liberace, Frankie Laine, Florian Zabach, etc.); 169 mysteries (e.g., The Adventures of Sherlock Holmes, I Spy, etc.); 286 dramatic and comedy shows (e.g., Molly, Life With Elizabeth); 364 cartoons (Looney Tunes and the Walter Lantz products), and 500 children's shows (Tim McCoy, etc.). Upcoming this year are four new series, one of which will be a second group based on stories by the late Jack London. This one will be titled Smoke Bellcw and will be based on London's Alaskan stories. (The first series, Captain David Grief, so far has racked up $1.7 million in sales.) Of the remaining three series, two probably will be produced outside of the U. S. Though production is uppermost in Guild's corporate mind, Mr. Kaufman declared, his firm will not tackle a new series until its salability has been proven. Furthermore, it will continue to concentrate on enlarging its distribution and expects to enter into co-production with outside firms. Guild management, he asserted, will make full use of its "proven patterns" of sales and exploitation. Guild now is in the position to sell one program nationally, while syndicating another series and selling yet another in package form — all at the same time. This formula, he said, is applicable for a two to four-year period. After that, stations may still buy Guild properties on a multiple re-run basis. Guild also is expanding its operations outside of the U. S. proper. Next month, its expects to open a New Mexico City office to service the Latin American market, thus giving it a third foreign sales branch. The other two are located in London and Toronto. While the firm intends to diversify its sphere of operations, diversification, Mr. Kaufman declared, will take place only in "related activities." He told shareholders of the firm's intention to consummate its purchase of last May for WMAM and WMBVTV Marinette, Wis. Because of the lapse of time between last spring and now, Mr. Kauman explained, conditions and terms of the purchase will have to be renegotiated. He also revealed that Guild currently is negotiating with a major Hollywood studio for acquisition of back-issue films that eventually will be distributed by Guild. While expressing hope that this deal will be concluded in the near future, he declined to name the studio in question. He also took note of Guild's current talks with Product Services Inc., a New York advertising agency, which is reported to be on the verge of announcing a major tv film project [B»T, May 13]. Naroff of Trans-Lux Dies FUNERAL services were held in Brooklyn last Wednesday for Al Naroff, 46, West Coast manager of Trans-Lux Television Corp., who died suddenly May 10 after a heart attack while on a business trip. up its production of half-hour filmed series and "under existing contracts with television networks, it is virtually guaranteed a satisfactory return from these investments." Profit from the production and distribution of feature pictures this year can be expected to be "substantial." Projection of annual income to the 1960-62 economy: $150 million. Warner Bros. — Second quarter of fiscal year can be expected to show "very disappointing results" but a recovery in company revenues and earnings is expected to begin in the last fiscal quarter of this year and extend well into fiscal 1958. Warner Bros, obtains about 40% of its revenues in foreign markets. In addition to motion picture production and distribution, company through subsidiaries operates a music publishing business and holds minority interest in a major British theatre chain. Projection of annual revenues to 1960-62 economy: $92 million. RKO Tv, Rountree Merge; Latter to Use RKO Facilities RKO Television and Rountree Productions Inc., last week announced a merger with the implication that RKO Television will be placing its film production facilities at the disposal of Rountree. Meanwhile, RKO Television can be expected soon to announce a new national sales pattern for its tv shows. Both moves involve Adolf N. (Abe) Hult who only recently was appointed special sales consultant for RKO Television. Mr. Hult will act as coordinator for RKO in the RKO-Rountree arrangement, while Rountree Productions will be represented by Oliver Presbrey, president, and Bob Novak, executive vice president. In addition to providing production for Rountree, RKO Television will act as exclusive sales representative for Rountree shows. Among these: Leave It to the Girls, live tv panel show; This House Is Haunted and Mike the Magic Cat, both to be filmed. Television Programs of America Adds Three Account Executives WALTER K. NEILL, Hugh M. Simpson and Stan Byrnes have joined Television Programs of America Inc., New York, as account executives. In announcing these additions last week, Michael M. Sillerman. executive vice president of TP A, said Mr. Neill would headquarter in Detroit, Mr. Simpson in New Orleans and Mr. Byrnes will be on a roving assignment. Mr. Neill formerly was head of his own advertising and public relations agency in Los Angeles, was an account executive with Ruthrauff & Ryan in that city and then served four years in the U. S. Foreign Service. He was with the U. S. Embassy in London and the U. S. legations in Cairo. Canberra, Australia and the Phillipines. Mr. Simpson formerly was with WALATV Mobile, Ala., and the L. M. Berry Co. as sales supervisor. Mr. Byrnes formerly was with WOR-TV. Louis G. Cowan Inc. and was sales manager of Pathe Pictures, all in New York. Page 42 • May 20, 1957 Broadcasting • Telecasting