EmptyFunding strong for Movie Gallery
Shares of Movie Gallery Inc. climbed 6.5% on Tuesday to $4.61 after the company said that it expects $900 million in funding to refinance its entire senior secured credit facility, a move that might help the movie rental chain avoid bankruptcy. The debt-laden company also said it expects same-store sales to fall 2.9% and operating income of $24 million for the fourth quarter. Movie Gallery sees fiscal 2006 revenue of $2.5 billion, less than analysts were predicting.
Advertising boosts TF1 revenue
French commercial broadcaster TF1 group posted a 5.8% increase in revenue in 2006 to €2.7 billion ($3.5 billion), the company said Tuesday. The TF1 channel's net advertising revenue totaled €1.8 billion ($2.4 billion), an increase of 3.7% from 2005. The group's other activities grew 9.9% compared with 2005, an increase the French media giant attributes to strong results from its televised shopping network Teleshopping, French thematic channels, movie distribution arm TF1 International and Eurosport International activities. The group's current operating profit came to €301 million ($395 million), down €38.2 million ($50 million) from 2005, mostly because of to the €113.6 million ($149 million) cost of the 2006 World Cup soccer tournament.
Salzburg TV has Red Bull wings
Austrian soft drink company Red Bull has received a green light from the country's media watchdogs to take over 95% of regional channel Salzburg TV, the company said Tuesday. Industry observers believe this is the first time a broadcaster has been bought out by a food production company in Europe. The broadcaster, which has a penetration of about 760,000 households in and around Salzburg, is available free-to-air and over cable and could become accessible throughout the continent via satellite. The company's other media-related assets include the Red Bull Air Race World Series — the rights to which have been sold worldwide, including to Fox Sports in the U.S.