Ticketmaster Reports Record First Quarter Results

Business Wire, June 2, 1998

LOS ANGELES--(BUSINESS WIRE)--June 2, 1998--Ticketmaster Group, Inc. (NASDAQ: TKTM) today reported record revenues of $98.6 million for the first quarter of the 1999 fiscal year ended April 30, 1998, up 28% from revenues of $77.0 million in the first quarter of the 1998 fiscal year ended April 30, 1997. EBITDA (earnings before interest, taxes, depreciation, and amortization, excluding one-time merger costs of $2.0 million related to the USA Networks Inc. transaction) was $14.8 million in the fiscal 1999 first quarter, up 33% from $11.1 million in the fiscal 1998 first quarter. Attributable EBITDA (including Ticketmaster's pro rata share of EBITDA of its unconsolidated businesses, but excluding the one-time merger costs) was $15.0 million in the fiscal 1999 first quarter, compared with attributable EBITDA of $12.2 million in the fiscal 1998 first quarter. Operating income was approximately $8.1 million in the fiscal 1999 first quarter versus operating income of $6.8 million in the fiscal 1998 firstquarter.

Pre-tax income in the fiscal 1999 first quarter was $5.5 million (excluding one-time merger costs of $2.0 million related to the USA Networks Inc. transaction) versus $4.7 million in the fiscal 1998 first quarter. Net income in the fiscal 1999 first quarter was $2.6 million (excluding the one-time merger costs) versus $1.9 million in the fiscal 1998 first quarter. Earnings per diluted share were $0.10 in the fiscal 1999 first quarter (excluding the one-time merger costs) versus $0.07 in the fiscal 1998 first quarter. Ticketmaster sold 19.7 million tickets, including sales by unconsolidated businesses, in the fiscal 1999 first quarter, up 12% from 17.6 million tickets in the fiscal 1998 first quarter.

"Building on the momentum created in fiscal 1998, Ticketmaster continued to exhibit strength in its principal ticketing business, reporting significant year-over-year growth and record first quarter revenues and earnings," said Fredric D. Rosen, President and CEO. "In particular, Ticketmaster experienced phenomenal growth in online ticketing, selling over 500,000 tickets worth nearly $20 million, and entered into a partnership with top online music retailer, N2K Music Boulevard, further solidifying its leading position in electronic commerce."

Rosen added, "We anticipate closing the merger with USA Networks this month, and we remain confident that Ticketmaster will continue to grow and prosper under its new ownership."

Ticketmaster is the world's leading computerized ticketing service, selling over 70 million tickets a year through over 2,900 retail ticket center outlets, 29 telephone call centers, and an Internet site. Ticketmaster serves more than 3,750 clients in the U.S., Canada, Mexico, Europe, Australia and South America. The Company provides ticketing for 85 professional sports franchises and hundreds of leading arenas, stadiums, performing arts venues, and theaters. Clients receive comprehensive ticket inventory control and management, broad distribution, and dedicated marketing and support services. The public receives convenient access to tickets for more than 150,000 events a year, including a broad range of concerts, sports, family entertainment, and performing arts.

Statements contained in this press release regarding the Company's continued growth are forward-looking statements and are subject to risks and uncertainties which include, but are not limited to, business and general economic conditions and competitive factors.

Note To Editors -- See Financial Table Attached

                      TICKETMASTER GROUP, INC.
                          And Subsidiaries
                  Consolidated Statements of Income
                             Unaudited
       (In thousands, except share and per share information)

                                         Three months ended April 30,
                                             1997              1998
Revenue:
     Ticketing operations                $     67,392    $     88,252
     Concession control systems                 6,250           6,483
     Publications                               2,967           3,324
     Merchandising                                394             520
                                               77,003          98,579
Operating costs:
     Ticketing operations                      39,105          52,128
     Ticketing selling, general
      and administrative                       10,600          14,912
     Concession control systems
      operations                                3,701           3,912
     Concession control systems
      selling, general
      and administrative                        2,287           2,658
     Publications                               4,723           4,265
     Merchandising                                350             466
     Corporate general and
      administrative                            5,121           5,425
     Depreciation                               2,233           2,898
     Amortization of goodwill                   1,028           1,414
     Amortization of other                      1,798           2,522
     Equity in net income of
      unconsolidated affiliates                  (787)            (81)

           Operating income                     6,844           8,060

Other (income) expenses:
     Interest expense, net                      2,100           2,633
     Minority interests                            43             (94)
     Merger costs                                --             2,000
  Income before income taxes                    4,701           3,521

Income tax provision                            2,820           2,914

          Net income                     $      1,881    $        607

Earnings per share                       $       0.07    $       0.02

Diluted earnings per share               $       0.07    $       0.02

Basic weighted average number of
     common shares outstanding(1)          25,483,402      26,273,413
Diluted weighted average number of
     common shares outstanding(1)          25,483,402      27,430,141

Supplemental Information:
     EBITDA(2)                           $     11,116    $     14,813
     Attributable EBITDA(3)              $     12,201    $     15,010
     Number of Tickets Sold
          Consolidated Businesses              14,808          18,403
          Unconsolidated Businesses             2,756           1,263
          Total tickets sold
           (Managed Businesses)                17,564          19,666

(1)In the fourth quarter of fiscal 1998, the Company adopted
   SFAS#128 "Earnings Per Share"; such adoption has been retroactively
   restated to all periods presented.

(2)EBITDA represents earnings before interest, taxes, depreciation and
   amortization, but excludes merger costs.

(3)Attributable EBITDA is EBITDA plus Ticketmaster's pro rata share of
   EBITDA of unconsolidated businesses.



  CONTACT: George Sard/Debbie Miller
            Sard Verbinnen & Co
            212/687-8080