Spelling Dumps Virgin, Posts Profit

On Tuesday, Spelling Entertainment Group, parent company of Virgin Interactive, reported a net income of US$3 million for the second quarter. Last year for the same quarter, the company reported losses of almost $22 million, primarily due to losses at Virgin.

On February 20, 1997, Spelling Entertainment announced its intention to divest its majority interest in Virgin Interactive by the end of 1997, and Virgin has been classified as a discontinued operation. Spelling holds a 90 percent interest in Virgin. Viacom holds the remaining 10 percent.

Spelling benefited from its strong television division, which includes popular shows such as Melrose Place and Moesha. The feature film division did not perform as well, posting a $8 million loss.

Overall, the company reported a loss before interest, taxes, depreciation, and amortization for the 1997 second quarter of $2.5 million (compared to $2.2 million for the comparable period a year earlier) but made up for it with a $6.6 million benefit from income taxes.