Paramount, Blockbuster Help Viacom Post Quarterly Profit

Viacom Inc. posted a profit for the first quarter of 1995, rebounding from a loss a year ago. It cited strong performances by its Paramount movies, Blockbuster video rentals and MTV cable network business.

For the three months ended March 31, the company earned $56.2 million, or 15 cents a share, contrasted with a loss of $454 million, or $3.59 a share, in the same period a year earlier.

The results exceeded expectations on Wall Street, which pushed Viacom’s Class A shares up $1.125 to $48.50 on the American Stock Exchange.

Viacom officials said the performance reflects the successful integration of the Paramount Pictures, Blockbuster Video and Simon & Schuster publishing operations into Viacom’s businesses, led by the MTV and Showtime cable networks.

The company’s cable television system business, which is up for sale, also improved, and it had a smaller loss from publishing in the quarter.

Viacom’s earnings improved in comparison to what it reported for the first quarter last year, when Paramount was included for only a month, as well in comparison to pro forma calculations of what it would have earned if Paramount and Blockbuster were part of Viacom for all of 1994.

Viacom won control of Paramount Communications Inc. in March, 1994, and acquired Blockbuster Entertainment Corp. about six months later.

The company said revenue during the first quarter climbed to $2.7 billion, up 25% from pro forma revenue of $2.15 billion during the same period in 1994. Viacom reported actual revenue of $838 million for the quarter a year ago, including a month from Paramount.