Things unwinding at Blockbuster; Viacom, taking $300 million write-down, says earnings will be below expectations. (Blockbuster Entertainment Corp.)(Brief Article)

Broadcasting & Cable, July, 1997 by Higgins, John M.

Viacom, taking $300 million write-down, says earnings will be below expectations

Viacom acknowledged last Tuesday that problems at its Blockbuster Entertainment unit are growing deeper by taking a $300 million write-down and saying that earnings would fall short even of limited expectations. At least one analyst says part of Blockbuster's problem is its policy against adult tapes.

Viacom said that Blockbuster's revenue for the second quarter should run $880 million-$900 million, versus about $825 million last year, but that cash flow would run just $40 million-$50 million, a plunge of at least 65% from the $143 million of last year.

Redstone has brought in John Antioco, former president of Pepsico Inc.'s Taco Beil unit, to try to turn...

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