‘Back to the Future’ and 2 TV Deals Send MCA Profits Up 90%

With large assists from Hollywood’s late-summer box-office hit, Steven Spielberg’s “Back to the Future,” and two major television syndication deals, MCA Inc. on Monday reported that it chalked up a 90% increase in third-quarter profits.

The Los Angeles-based entertainment conglomerate, parent of Universal Pictures, reported that its $67.5-million net income was the second highest for any third quarter in the company’s history. It compared to profits of $35.4 million in the same period of 1984.

MCA found the latest results a welcome contrast to its first and second quarters, in which box-office duds dragged down net profits 35% and 38%, respectively, from the year-ago periods.

Even with the disappointing 1985 first half, the company was able to record a 28.5% increase in net earnings in the first nine months to $98.2 million from $76.4 million a year earlier.

Third-quarter and nine-month revenue set records at $626.7 million and $1.47 billion, respectively, compared to the year-ago totals of $412.7 million and $1.15 billion, respectively.

Besides “Back to the Future,” which has had box-office gross revenue of $170 million since opening, MCA’s third-quarter results were aided by the syndication of the TV series “Gimme a Break” and the repackaging and syndication of TV series reruns “Columbo,” “McMillan and Wife” and “McCloud” under the title “Mystery Movies.” The company said those syndication deals brought in about $100 million in third-quarter revenue.

Revenue figures reflected these developments: $132.2 million on theatrical films, compared to $56.2 million in the 1984 third quarter, and $156.5 million on television, compared to $88.1 million in the year-ago quarter. Operating profit on combined theatrical and TV filmed entertainment was $85.7 million, compared to $28.1 million in the 1984 third quarter.

MCA also reported gains in home-video group revenue from its home video and pay TV to $58.6 million from $45 million a year earlier and improved results in its studio tour and amphitheater to $30.3 million from $28.2 million.

Revenue for MCA’s records and music group increased to $75.7 million from $62.9 million and book publishing to $40.1 million from $32.9 million.

Overall, operating income increased 183% in the third-quarter and 84% in the nine-month periods, the company said.