Ascent Entertainment Group Inc., parent of the Nuggets
and Avalanche, "showed strong revenue growth for the second
quarter but faces hurdles with its pro sports business,
according to financial reports released Monday," and cited
by Stephen Keating of the DENVER POST. Smith Barney analyst
John Reidy called the quarter results "pretty much within
expectations. The big question is the arena." Ascent will
not break ground on the proposed Pepsi Center by August 31,
"causing it to default on, and renegotiate," a $200M credit
line with NationsBank. Keating adds that the Nuggets and
Avalanche "continue to be a drain" for Ascent. The company
cited "higher operating costs and lower revenues" for the
Nuggets, which contributed to a $4.2M operating loss for
Ascent's entertainment segment (DENVER POST, 7/29). Ascent
posted a loss of $9.8M, or $.33 a share, compared with a
loss of $6.3M, or $.21 a share a year earlier. Earnings
rose to $16.4M from $9.1M, and second-quarter revenue rose
56% to $87.6M (WALL STREET JOURNAL, 7/29).
FORD TOUGH: Although "Air Force One," produced by
Ascent subsidiary, Beacon Communications, took in $37.1M
this weekend, Keating writes that Ascent "will not see any
'Air Force One' proceeds until the current quarter."
Keating cites estimates that Beacon "could make" a $15M
profit if "Air Force One" breaks the $100M mark, or up to a
$60M if it breaks $200M (DENVER POST, 7/29).
