5-1-86 Agenda & Packet - Laserfiche WebLink

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4 March 31, 1986 that profits for the 11 casinos dropped McDonald's, which has more than 9,000 fran- 56.4% last year to $51.5 million. That chises around the world, has finally got decline followed 1984 decline from $169 one in Rome, one of 500 in Europe million of 1983 (1984 profit was $118.2 for fiscal year, Toys "R"Us upped earnin millionl . by 7.5% through growth of new stores. Net income was $120 million; sales jumped 16% Slumping oil industry revenues are impact- to $1.97 billion. Fourth quarter holiday ing Canada's already faltering economy. sales increased 10% to $924 million; sales Entertainment industry particularly is in existing stores increased 2% affected; Calgary Stampede did fair busi- Winnebago Industries Inc. fourth quarter ness, but Canadian fairs are counting on earnings of $6.3 million was 7% increase recent agreement with music organizations Kodak is acquiring printing and to help bottom line. New formula calls publishing companies Lorimar-Tele- for "per day" fee, rather than percentage pictures Corp. reported sharp drop in of gross, for fairs with less than 75,000 earnings for first 6 months of fiscal '86 "paid." Of about 750 fairs in Canada, 17 to $3.1 million compared with $23.3 mil- draw more than 75,000. lion for period a year ago. Increased TV development and disappointing box of- fice for "Power" film were partially to Organizers of events offering free drinks blame. were ruled "not liable", should accident occur to customers after leaving event; ABC's net income fell 19% last year; 29% ruling by 'Rhode Island superior court was drop came in 4th quarter before acquisi- noted by Amusement Business (3/15) . tion by Capital Cities. Revenue fell 11% to $3.31 billion, down from $3.71 billion; earnings of $158.4 million were down from $195.3 million in 1984. ABC's last place FINANCIAL YARDSTICKS cial1ng per oamong rmance,1eaccordingaffected Wall1nan- St. Journal analysis. Also, 1984 figures were distorted by heavy Olympic advertising. As the Administration revised downward its data on the last quarter of 1985, and economists turn gloomy on the near-term 1111/outlook, the worst of the news regards A D V ERT I S I N C the data and collection system itself. The private sector doesn't replicate the federal studies; rather, additional sur- veys are built on information obtained Newspaper advertising revenues were up 78 from Census Bureau/Bureau of Labor Sta- last year to $25.2 billion, following a tistics (BLS) and other agencies. Many 14.3% gain in 1984. Newspapers are ahead studies have been dropped--by the feds of ca�ercial TV, which came in just under (the Natl Travel Survey, for one) and the $20 billion, up slightly from $19.15 bil- private sector (Nielsen's participant and lion in 1984. Classified ad spending was spectator sports) . up 9.4% to $8.38 billion, according to the Newspaper Advertising Bureau. Nation- While the need for more data and under- al advertising accounted for $3.35 billion. standing grows, the availability and re- liability of existing information comes It didn't take long for Reagan Adminis- into question. The federal government tration to back down on proposal to limit has taken steps by ending its "snap" tax deduction for advertising expenses. forecasts until it can be more confident AdvAge (3/17) says private briefing for about analysis and projections. industry leaders revealedtax planners hadn't done enough homework; proposed tax Meanwhile, contradictions abound. Within changes would have caused more trouble days after the stock market surged through than they were worth. the 1800 barrier, because interest rates continued to decline, some analysts were Networks sold more than $880 million in arguing that interest rates wouldn't be daytime advertising, upfront, a 10% drop falling this way if the economy were as from 1984-85. Late night ad sales are in strong, or strengthening, as a Dun & Brad- better shape, AdvAge reports, but sports street survey indicated . (in a release" are still soft. March 19) . D&B said 1985 was a lull period; strong consumer demand and reduced competition from imports have raised ex- Advertisers who aim for the upscale cus- ecutives' expectations from 68% in the tomer in the New York area probably aim first quarter to 72% that sales would for the New York Times and its Sunday ma. rise in the second quarter that begins azine. Though circulation is only about tomorrow, April Fools Day. 10% of households in NY metropolitan area,