PW: Media Play/On Cue Sales Fall 8%

Jack Eugster, Musicland chairman, noted that during the year the Media Play stores had the biggest bottomline improvement. Indeed, the bottomline for the entire company was much improved over 1996 as Musicland reported net earnings of $14 million last year, compared to a net loss of $194 million in 1996. Sales fell 3%, to $1.77 billion. During 1997 Musicland, which at one point had tettered on the edge of bankruptcy, improved its liquidity by more than $100 million, putting the company on a much better financial footing compared to one year ago. And its stock price, which at one time sold for less than $1 per share, is now at more than $8.