Broadcasting Telecasting (Jul-Sep 1959)

AB-PT CHALKS UP 28% RISE $3.8 million profit recorded at midyear American Broadcasting Paramount Theatres Inc. estimates its net operating profit for the first half of this year at 28% above the like half of 1958. AB-PT is parent of the ABC broadcasting and theatre divisions, which supply most of its revenue, as well as of subsidiary Am-Par Records and holds interests in amusement centers and electronics industries. The net operating profit for the six months was $3,886,000 (90 cents a share). This compares to the previous first-half figure of $3,042,000 (70 cents a share). In the second quarter alone (April, May and June), AB-PT compiled an estimated net operating profit of $1,573,000 or 36 cents a share, a 32% increase over the previous like period ($1,188,000 or 27 cents a share). In reporting the progress, Leonard H. Goldenson, president of AB-PT, said the theatre division had its best second quarter since 1955 — "the results more than made up what the theatres had been behind in the first quarter to show overall six months, improvement over last year." Broadcasting Arm • ABC-TV, he observed, has continued to improve corn Higher than ever • KTVI (TV) St. Louis, whose 592-ft. tower was toppled by a tornado last winter (Broadcasting, Feb. 16), now is operating from a new 1,049-ft. Kimco tower. At the base is KTVI's new 100 kw transmitter. The new gear cost about a half-million dollars. petitively, particularly in markets where the three networks have equal competitive facilities. There, he said, ABC-TV showed "the largest increase in share of audience for the current television season." Mr. Goldenson pointed to the past three months as an active selling period for the network's 1959-60 schedule of programs, and noted that for the first time, ABC-TV will program in the 10:30-11 p.m. period throughout the week. He said it was expected that new daytime programming to start next October will strengthen the daytime schedule established this past year. AB-PT buying back stock held by Noble American Broadcasting-Paramount Theatres Inc. last Thursday (July 30) acquired all the preferred stock formerly owned by Edward J. Noble, who died last December, and now held by his estate. AB-PT also purchased preferred shares held by the Edward John Noble Foundation. At the time of his death, Mr. Noble was the largest single stockholder of AB-PT, owning approximately 75% of the preferred and 8% of the common stock, much of the holdings in the name of the foundation. AB-PT on Thursday purchased on the New York Stock Exchange 225,028 shares of its '"6% preferred stock held by the estate and 15,740 shares of its 5% preferred stock held by the foundation, at a price of $19.25 per share. Maintains a Bid • The corporation said it would maintain a bid on the exchange until Sept. 30 of this year to purchase — at the same price — "all or any" of a remaining 78,537 shares of its 5% preferred held by other stockholders which may be offered. AB-PT explained that the elimination of the stock was being made to simplify the company's capital structure and to save dividend payments on the outstanding preferred stock. Mr. Noble at the time of his death was chairman of the finance committee and on the executive committee of ABPT and was board chairman of Beechnut-Life Savers Inc. Since it was set up in 1940 by Mr. Noble, the foundation has made many substantial contributions for educational, religious and charitable purposes. Mr. Noble took a hand in the 1953 merger of ABC (which he had acquired for $8 million in 1943) with United Paramount Theatres to form AB-PT, a deal said to have been in the $25 millions. Hot tip KPOI Honolulu received a telephone tip about a burglary that had just been committed late last month but the caller refused the $1 the station gives listeners who telephone in news tips. Reason: He had just done the burglary and didn't wish to give his address. Instead the thief requested the buck be given the local Police Relief Assn. ABC-TV unleashing determined promotion ABC-TV is aiming to move into "a firm number one" position among the three networks in 1959-60, Oliver Treyz, ABC-TV president, told a meeting of eastern affiliate executives in New York last week. "But 1959-60 will be a critical year for us." Mr. Treyz cautioned about 150 station managers and station promotion managers attending the two-day session. He said that 64% of the nighttime schedule is new programming, which means "we have a big promotion job ahead of us." ABC-TV, Mr. Treyz reported, is launching "the most extensive promotion-publicity-exploitation advertising drive in history" in support of its fall schedule. Leonard H. Goldenson, president of American Broadcasting-Paramount Theatres Inc., parent company, called on affiliates for "the same drive and enthusiasm" in their promotion of ABCTV's "more than $75 million programming investment" as has been shown by the network in building the schedule. A half dozen other network officers addressed the affiliate session. A similar meeting for the midwest and far west station managers and promotion managers was held in Chicago on Thursday and Friday (July 28-31). Regional sessions will be held today and tomorrow (Aug. 3-4) in Dallas and in Los Angeles on Thursday and Friday (Aug. 6-7). KSPR-TV bows to catv License for ch. 6 KSPR-TV Casper. Wyo., has been returned to FCC by owner Donald L. Hathaway and the station went dark July 21. "Our main stumbling block has not been the competitive tv station [KTWO-TV] here but rather the community tv set-up . . ." which brings in three stations from Denver and also repeats KTWO-TV, Mr. Hathaway told FCC. He said viewers hooked into catv had 46 (THE MEDIA) BROADCASTING, August 3, 1959