Seagram Announces A 10 Percent Increase In Second Quarter EBITDA To $530 Million On Revenues Of $3.75 Billion

Business Wire, Jan 29, 1997

MONTREAL--(BUSINESS WIRE)--January 29, 1997--The Seagram Company Ltd. announced today that attributed earnings before interest, taxes, depreciation and amortization (EBITDA) from operations increased 10 percent to $530 million while revenues increased five percent to $3.75 billion during the Company's second quarter ended December 31, 1996. In last year's second quarter, EBITDA amounted to $480 million on revenues of $3.56 billion. The EBITDA comparison does not include two unusual items: a $64 million pre-tax gain on the sale of Universal's book publishing unit in December 1996 and a $290 million pre-tax reengineering charge for Seagram's beverage operations in October 1995.

Operating results for the second quarter included the following highlights:

- Universal's attributed revenues increased 13 percent in the second quarter primarily due to a significant improvement in music. The Seagram Beverage Group attributed revenues increased five percent, benefiting from the continued success of Tropicana Pure Premium. The Seagram Spirits And Wine Group attributed revenues decreased two percent due principally to volume declines in Europe.

- Seagram's three operating units recorded EBITDA gains. Most of Universal's 13 percent increase in EBITDA came from music and theme parks. The Seagram Beverage Group EBITDA rose 14 percent. The Seagram Spirits And Wine Group EBITDA increased nine percent, reflecting North America's particularly strong performance.

- In the second quarter, net income was $161 million or $0.43 per share compared with $185 million or $0.50 per share before the reengineering charge last year. Including that charge, the Company reported a net loss last year of $26 million or $0.07 per share.

- For the six months ended December 31, 1996, revenues increased to $6.69 billion from $6.53 billion, a gain of two percent. EBITDA increased nine percent to $1.0 billion from $925 million. Net income, including unusual items, was $327 million or $0.88 per share compared to $40 million or $0.11 per share a year ago.

Commenting on the Company's second quarter results, Edgar Bronfman, Jr., president and chief executive officer, said: "Seagram made additional progress this quarter towards our goal of sustained growth in all three of our businesses. Seagram Beverage Group recorded strong North American growth, improved international earnings and higher margins. Spirits and Wine Group earnings improved despite extremely difficult market conditions in Europe and Asia Pacific which have continued into the current quarter. Universal's investment in its Music Group's new labels and artists this past year led to significantly higher revenues and profits in the quarter. Universal's theme parks also continued to perform well following the opening of two new attractions last spring."

The Seagram Company Ltd. operates in two global segments: beverages and entertainment. The beverage businesses are engaged principally in the production and marketing of distilled spirits, wines, fruit juices, coolers, beers and mixers throughout more than 150 countries and territories. The entertainment company, Universal Studios, Inc., produces and distributes motion picture, television and home video products, and recorded music; and operates theme parks and retail stores. Headquartered in Montreal, Seagram employs 30,000 people worldwide.

A financial summary of the second quarter and six months is attached. -0-

                     THE SEAGRAM COMPANY LTD.
                (US $ in Millions except per share)
                            (Unaudited)

                               Three Months Ended    Six Months Ended
                                  December 31          December 31
                                  1996     1995       1996     1995

Revenues                         $3,749   $3,560    $6,693   $6,531

EBITDA (a)
  Beverages
     Spirits and Wine               315      290       497      459
     Fruit Juices and Other          65       57       128      112
Total Beverages                     380      347       625      571
  Entertainment
     Filmed Entertainment            65       64       217      203
     Music Entertainment             45       27        52       48
     Recreation and Other            40       42       115      103
  Total Entertainment               150      133       384      354

Total EBITDA                        530      480     1,009      925
Adjustment for Equity Cos.-
 Beverages                            2        4         5        6
Adjustment for Equity Cos.-
Entertainment                        23       23        47       44
Depreciation and Amortization       136      127       275      247
Corporate Expenses                   32       32        60       44

Operating Income before
 Special Items                      337      294       622      584
Special Items (b)                    64     (290)       64     (290)
Operating Income                    401        4       686      294

Interest, net and other (c)          66       70        73      140

Income (Loss) before Income Taxes
 and Minority Interest              335      (66)      613      154
Provision for Income Taxes (d)      172      (44)      278       96

Minority Interest                     2        4         8       18

NET INCOME (LOSS)                  $161     $(26)     $327      $40

EARNINGS (LOSS) PER SHARE:        $0.43   $(0.07)    $0.88    $0.11


(a) EBITDA includes our proportionate share of the EBITDA for our
    equity companies.

(b) Special items: 1996 - Gain on sale of The Putnam Berkley Group,
    Inc.; 1995 - Reengineering charge.

(c) Includes net interest expense and dividend income.  The six
    months ended December 31, 1996 includes a gain of $60 million
    from the sale of DuPont warrants.

(d) The three and six month periods ended December 31, 1996 include
    a $64 million tax provision relating to the sale of The Putnam
    Berkley Group, Inc.


                      THE SEAGRAM COMPANY LTD.
          Supplemental Revenues and Other Financial Data
                (US $ in Millions except per share)
                            (Unaudited)

                                  Three Months Ended    Six Months Ended
                                     December 31          December 31
                                   1996      1995       1996      1996

Revenues (a)

 Beverages
     Spirits and Wine               $1,681   $1,724     $2,819   $2,959
     Fruit Juices and Other            508      486      1,042      991

       Attributed Revenues -
        Beverages                    2,189    2,210      3,861    3,950

 Entertainment
     Filmed Entertainment              999    1,009      1,892    1,931
     Music Enertainment                465      329        810      668
     Recreation and Other              319      299        680      580
     Gain on sale of Putnam             64        -         64        -

       Attributed Revenues -
        Entertainment                1,847    1,637      3,446    3,179

  Total Attributed Revenues          4,036    3,847      7,307    7,129

  Adjustment for Equity Cos.-
    Beverages                          (68)     (82)      (147)    (171)
  Adjustment for Equity Cos.-
    Entertainment                     (219)    (205)      (467)    (427)

Total Reported Revenues             $3,749   $3,560     $6,693   $6,531

Average common shares
 outstanding (thousands)           370,159   373,675   370,452  373,352

Shares outstanding at end of
 period (thousands)                370,351   374,329   370,351  374,329


(a)  Attributed revenues include our proportionate share of the
     revenues for our equity companies.  The equity companies'
     adjustment reduces revenues to a GAAP reported basis.