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[PHOTO]
THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.
FIRST QUARTER REPORT
MARCH 31, 1999
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[GABELLI LOGO]
THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.
Our cover icon represents the underpinnings of Gabelli. The Teton
mountains in Wyoming represent what we believe in in America --
that creativity, ingenuity, hard work and a global uniqueness
provide enduring values. They also stand out in an increasingly
complex, interconnected and interdependent economic world.
* * * * * * *
Morningstar Rating (TM) of The Gabelli Global Multimedia Trust Inc. was
5 stars overall and for the three year period ended 3/31/99
among 54 domestic equity funds.
INVESTMENT OBJECTIVE:
The Gabelli Global Multimedia Trust Inc. is a closed-end, non-diversified
management investment company whose primary objective is long-term growth of
capital, with income as a secondary objective. The Fund seeks opportunities for
long-term growth within the context of two main investment universes: companies
involved in creativity, as it relates to the development of intellectual
property rights (copyrights); and companies involved in distribution, as it
relates to the delivery of these copyrights. Additionally, the Fund will invest
in companies participating in emerging technological advances in interactive
services and products.
THIS REPORT IS PRINTED ON RECYCLED PAPER.
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[PHOTO]
THE GABELLI
GLOBAL
MULTIMEDIA
TRUST INC.
TO OUR SHAREHOLDERS,
In the first quarter of 1999, telecommunications and media companies were
global stock market leaders. While higher interest rates in the U.S. and
diminished growth expectations in Europe restrained returns in many equity
sectors, the telecommunications and media groups continued to be powered by
deregulation, new and improving technologies, and consolidation.
INVESTMENT PERFORMANCE
For the first quarter ended March 31, 1999, The Gabelli Global Multimedia
Trust Inc.'s ("Multimedia Trust") net asset value (NAV) per share increased
15.9% to $14.14. This compares to the average 2.8% increase of the 262 Global
Funds tracked by Lipper Inc. over this period. The Lipper average is an
unmanaged indicator of investment performance. For the twelve months ended March
31, 1999, the Multimedia Trust appreciated 31.5% after adjusting for the $0.80
per share in distributions paid during this period. This compares to the average
3.4% increase of the Lipper Inc. Global Fund Average over the same period. Since
its inception on November 15, 1994, the Multimedia Trust's net asset value has
achieved a 160.3% total return after adjusting for the rights offering and all
distributions. This equates to a 24.4% average annual return.
The Multimedia Trust's common shares ended the first quarter at $11.875 per
share on the New York Stock Exchange, up 8.6% for the quarter and an increase of
26.0% for the twelve-month period ending March 31, 1999. The common shares have
increased 105.1% since inception after adjusting for all distributions and the
rights offering.
WHAT WE DO
The success of momentum investing in recent years and investors' desire for
instant gratification have combined to make value investing appear dull. At the
risk of being dull, we will once again describe the "boring" value approach that
has seen us through both good and bad markets over the last 4 years at The
Gabelli Global Multimedia Trust and for over 21 years at Gabelli Asset
Management Company. In past reports, we have tried to articulate our investment
philosophy and methodology. The following graphic further illustrates the
interplay among the four components of our valuation approach.
[GRAPH]
Our focus is on free cash flow; earnings before interest, taxes,
depreciation and amortization (EBITDA) minus the capital expenditures necessary
to grow the business. We believe free cash flow is the best barometer of a
business' value. Rising free cash flow often foreshadows net earnings
improvement. We also look at earnings per share trends. Unlike Wall Street's
ubiquitous earnings momentum players, we do not try to forecast earnings
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with accounting precision and then trade stocks based on quarterly expectations
and realities. We simply try to position ourselves in front of long-term
earnings uptrends. In addition, we analyze on and off balance sheet assets and
liabilities such as plant and equipment, inventories, receivables, and legal,
environmental and health care issues. We want to know everything and anything
that will add to or detract from our private market value (PMV) estimates.
Finally, we look for a catalyst; something happening in the company's industry
or indigenous to the company itself that will surface value. In the case of the
independent telephone stocks, the catalyst is a regulatory change. In the
agricultural equipment business, it is the increasing world-wide demand for
American food and feed crops. In other instances, it may be a change in
management, sale or spin-off of a division or the development of a profitable
new business.
Once we identify stocks that qualify as fundamental and conceptual bargains,
we then become patient investors. This has been a proven long-term method for
preserving and enhancing wealth in the U.S. equities market. At the margin, our
new investments are focused on businesses that are well-managed and will benefit
from sustainable long-term economic dynamics. These include macro trends, such
as the globalization of the market in filmed entertainment and
telecommunications, and micro trends, such as an increased focus on productivity
enhancing goods and services.
THE PORTFOLIO OVERVIEW
GLOBAL ALLOCATION
The chart at the right represents the Multimedia Trust's holdings by
geographic region as of March 31, 1999. The geographic allocation will change
based on current global market conditions. Countries and/or regions and
companies represented in the chart and below may or may not be included in the
Multimedia Trust's portfolio in the future.
EQUITY MIX
The Multimedia Trust's investment premise falls within the context of two
main investment universes: a) companies involved in creativity, as it relates to
the development of intellectual property rights (copyrights); and b) companies
involved in distribution, as it relates to the delivery of these copyrights.
Additionally, this includes the broad scope of communications-related services
such as basic voice and data.
The chart at the right depicts our equity mix of the copyright/creativity
and distribution companies in our portfolio as of March 31, 1999.
<TABLE>
<CAPTION>
HOLDINGS BY GEOGRAPHIC REGION - 3/31/99
<S> <C>
UNITED STATES 80.5%
CANADA 6.2%
EUROPE 5.9%
ASIA/PACIFIC RIM 4.7%
LATIN AMERICA 2.7%
DISTRIBUTION 60.9%
COPYRIGHT/CREATIVITY 39.1%
</TABLE>
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COMMENTARY
Telecommunications and media stocks shrugged off higher U.S. interest rates
and a disappointing European economy on their way to posting another strong
quarter. Secular trends in the industry are proving more powerful than
macroeconomic and market forces here in the U.S. and overseas. We expect this to
continue as deregulation, technology and accelerating takeover activity alters
the telecommunications and media landscape.
AT&T's recent agreement with Time Warner is perhaps the best illustration of
how the convergence of the computer, telephone and television is driving values.
AT&T has agreed to pay Time Warner $1.50 per cable subscriber per month for
exclusive access to its cable network this year. Over the next five years, this
price escalates to $6.00 per cable subscriber per month. Why is access to Time
Warner's cable infrastructure so valuable to AT&T? Because, combined with AT&T's
existing cable properties (the former Tele-Communications Inc.'s network), the
Time Warner cable systems would allow AT&T to sell local and long distance
telephony, Internet access and home entertainment services to almost two-thirds
of America's homes.
On paper, this adds $12 billion of economic value to Time Warner's cable
television business five years hence! This agreement has tremendous implications
for cable holdings such as Cablevision Systems and Comcast, which despite the
strong gains of recent years, may be dirt cheap at today's prices. We are not
suggesting that AT&T will strike similar deals with these companies. The
regulators may have some objections to the AT&T/Time Warner agreement, and most
likely would not look favorably on AT&T monopolizing America's cable
infrastructure.
But, AT&T is not the only company hoping to offer more services to more
customers. Virtually every major player in the telecommunications industry
worldwide is looking for a way to offer a full menu of telephony, Internet and
entertainment services to more people, whether it be through cable television
lines, wireless systems or via technologically enhanced telephone wires. This is
the gold rush of the next millennium and it has already started as we prepare to
exit this millennium. What does this mean for creativity and content providers?
It means a rapidly expanding global audience. Almost everyone from e-commerce
retailers, to television or movie producers, to newspaper and magazine
publishers will benefit from the ability to easily reach into more people's
wallets worldwide.
International telephone companies have not advanced toward their cable
television colleagues yet, but they may begin following AT&T's lead.
International telephone companies appear to be focusing on global alliances. We
are hearing whispers that British Telecom and AT&T are considering investments
in Japan Telecom. We think this kind of activity--the global extension of
dominant telephone franchises--should continue to drive values in the
telecommunications industry.
THREE Cs AND A T ADD UP TO GRADE A PERFORMANCE
Our "three Cs"-- Cable television ("CATV"), Cable networks and Cellular
telephone franchises--were on the performance honor roll this quarter. CATV
stocks, including purer plays such as Cablevision Systems and Comcast, and cable
loaded conglomerates, such as Rogers Communications and Time Warner, posted
solid gains this quarter. Comcast's initial bid and AT&T's subsequent bid for
portfolio holding MediaOne Group ratcheted
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up cable subscriber values to approximately $4,000 per subscriber--up from
roughly $2,500 per subscriber one year ago. With the aforementioned AT&T/Time
Warner agreement demonstrating the strong demand for cable access, cable
television company values may continue to escalate. Investors gave high marks to
cable network companies Liberty Media Group (now a tracking stock of AT&T),
Viacom and USA Networks. Cellular telephone operators AirTouch Communications,
which was acquired by Vodafone, Western Wireless and Cellular Communications of
Puerto Rico also connected. T is for telephone, which stands for Telephone &
Data Systems, Japan Telecom, Telecom Italia, (being pursued by Olivetti and
Deutsche Telekom), and Frontier Corp. (the former Rochester Telephone, which has
received a bid from Bermuda-based Global Crossing), and rhymes with P for
profits this quarter.
Newspaper publishers United News & Media and NewsCorp delivered gains this
quarter, but Tribune, Independent Newspapers and Central Newspapers were left at
the curb. Group broadcaster Ackerley Group was flat while Paxson Communications
suffered what we believe will be temporary technical difficulties.
THE INTERNET--A REALITY THAT IS CHANGING OUR WORLD
As the Internet becomes more firmly entrenched in our everyday lives, we
would like to share with you a sampling of past technological advances that
contributed to improved quality of life and productivity.
<TABLE>
<CAPTION>
INVENTION DATE INVENTOR
<S> <C> <C>
Stock Ticker 1869 Thomas Edison
Telephone 1876 Alexander Graham Bell
Incandescent Electric Lamp 1879 Thomas Edison
Electric Motor 1881 Thomas Edison
Internal Combustion Engine 1893 Henry Ford
Radio 1895 Guglielmo Marconi
Talking Motion Picture 1913 Thomas Edison
Television 1926 Philo Farnsworth
Nylon 1935 DuPont and Co.
Internet 1969 BBN Corp.
</TABLE>
Internet stocks have dominated the business and consumer headlines. There
are two widely divergent schools of thought on Internet stocks. The bulls, led
by a whole new category of investors (aggressive on-line day traders), seem to
believe that even the most optimistic projections fall well short of accurately
reflecting the true growth potential of Internet companies. Their approach seems
to be one of discounting valuations because no price is too high to pay for a
stock with a "dot.com" at the end of its name. Stodgy investment
traditionalists, who were brought up believing that stock prices should have
some rational relationship to current as well as future value, are, of course,
appalled at the notion that any young company in even the most explosive growth
industry should trade at 100 times revenues.
We fall somewhere in between. We think some of the current Internet stars
(and perhaps a few "garage stage" companies we do not even know about), will go
on to become giant, highly profitable companies. At some point down the road, we
may look back and realize that a few Internet companies would have been bargains
at 200 times revenues. Unfortunately, we do not know which Internet companies
will end up in the S&P 500 and which will end up on the market trash heap.
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So, we will continue to pass on the richly priced pure Internet plays. But,
we hope to continue to profit from reasonably valued companies that can benefit
from the growth of the Internet. In recent years, we have reaped tremendous
gains from cable television stocks, which as we anticipated, have become
legitimate Internet players. More recently, we added Reader's Digest to the
portfolio--remember the company that publishes the wholesome little magazine
your grandparents and parents loved. Reader's Digest as an Internet company? We
will see. The company has aggressive new management, which has shed money losing
and marginally profitable businesses. Management also has a new business plan to
capitalize on its data bank of 140 million names concentrated in the 50 year old
and over demographic, which controls 70% of America's net worth. Reader's Digest
will be on the Internet, selling home improvement, health care, financial and
religious products--the kind of products in demand by its customer base. Over
the next five years, the company's goal is to increase revenues from $2.8
billion to $5.0 billion, and profits from $100 million to $500 million. We think
new Chairman and CEO Thomas Ryder, an American Express veteran who knows a few
things about leveraging sales to an existing customer base, may be able to meet
these goals.
DEAL ACTIVITY SURFACES VALUE
A component of our investment methodology is to identify industry and sector
trends and themes ahead of the curve and position ourselves to benefit from
these developments. Industry consolidation is one such trend. As we have
discussed in previous letters, the continued high level of activity in mergers
and acquisitions is providing a tailwind to the excellent performance of the
Multimedia Trust. The accompanying table illustrates how deal activity surfaced
value in a small sample of the portfolio holdings.
<TABLE>
<CAPTION>
FIRST QUARTER 1999 COMPLETED DEALS
NUMBER AVERAGE COST CLOSING
FUND HOLDING OF SHARES(a) PER SHARE(b) PRICE(c) CLOSING DATE %RETURN (d)
------------ ------------ ------------ -------- ------------ -----------
<S> <C> <C> <C> <C> <C>
Pulitzer Publishing Co. 26,000 $30.94 $81.19 3/19/99 162.37%
N2K Inc. 15,000 16.67 14.31 3/18/99 (14.14)
Netscape Communications Corp. 200 14.00 94.06 3/17/99 571.88
TCI Ventures Group 100,000 8.33 28.00 3/10/99 236.09
TCI/Liberty Media Group 184,000 12.86 54.44 3/10/99 323.48
Tele-Communications Inc., Cl. A 51,000 14.83 67.88 3/10/99 357.66
OzEmail Ltd., ADR 1,000 21.67 22.00 2/24/99 1.55
BC Telecom Inc. 60,000 17.72 26.48 2/01/99 49.41
LCS Industries Inc. 27,200 17.35 17.50 1/22/99 0.84
Petersen Cos. 100,000 33.61 34.00 1/14/99 1.15
</TABLE>
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(a) Number of shares held by the Fund on the final day of trading for the
issuer.
(b) Average purchase price of issuer's shares held by the Fund on the final day
of trading for the issuer.
(c) Closing price on the final day of trading for the issuer or the tender price
on the closing date of the tender offer.
(d) Represents average estimated return based on average cost per share and
closing price per share.
Note: See the Portfolio of Investments for a complete listing of holdings.
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Going forward, we expect accelerating deal activity from large companies
using high price/earnings multiple stock as currency to buy smaller companies
with much lower P/Es. This is accounting magic. If your stock is trading at 30
times earnings, you can pay a 100% premium for a smaller company trading at 10
times earnings and the transaction will still be accretive to earnings. This is
before factoring in any potential cost savings from combining the two companies'
operations. This price/earnings multiple arbitrage will be a deal too good for
many savvy business buyers to pass up.
CORPORATE GOVERNANCE - STOCK REPURCHASE PLAN
The Gabelli Global Multimedia Trust continues to consider actions that may
reduce or eliminate the market discount of its shares. How do we accomplish
this? There are several factors that historically have worked to narrow the
discounts of closed-end funds. One of these is a stock repurchase program, which
we instituted back in 1996.
The Board of Directors authorized the repurchase of up to 500,000 shares of
the Multimedia Trust's outstanding shares at a special meeting on July 3, 1996.
On February 26, 1997, the Board voted to increase the authorized shares which
may be repurchased to 750,000 and on May 13, 1998, the Board increased the
authorized shares which may be repurchased by another 250,000 shares to
1,000,000 shares. The Multimedia Trust may from time to time purchase shares of
its capital stock in the open market when the shares are trading at a discount
of 10% or more from the net asset value of the shares. In total, through March
31, 1999, 631,633 shares were repurchased in the open market.
A stock repurchase plan allows a company to buy back its own shares in the
open market (in our case, the New York Stock Exchange). This reduces the total
number of shares outstanding and increases the earnings per share.
When the Multimedia Trust purchases its own shares at a discount to NAV, the
Trust realizes a benefit equal to the difference between the net asset value and
the purchase price. This benefit is credited to the net assets of the remaining
shares, thus boosting the NAV. The larger the discount, the greater the benefit
on the NAV. Further, the market price is determined by supply and demand
factors. If there are more sellers than buyers the price will decline until
buyers enter the market to establish a sales price. A stock repurchase program
increases demand for the Gabelli Global Multimedia Trust's shares in the open
market. This provides a willing buyer of fund shares which offsets, at least in
part, sales of fund shares.
PREFERRED STOCK -- AN INVESTMENT FOR THE FUTURE
On June 4, 1997, the Trust successfully completed its offering of cumulative
preferred stock which is rated 'aaa' by Moody's Investors Service, Inc. The
Trust issued 1,250,000 Preferred Shares at $25 per share ($31.25 million) with
an annual dividend rate of $1.98 per share paying quarterly. The Preferred
Shares are trading on the New York Stock Exchange under the symbol "GGT Pr" and
closed at $25.75 on March 31, 1999.
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How would Preferred Shares benefit Common Shareholders? From its inception
on November 15, 1994 through March 31, 1999, the Multimedia Trust has earned a
24.4% average annual return. The Preferred Shares were issued with an annual
dividend rate of 7.92%. The only obligation that the Trust has to the Preferred
Shareholders is to pay the stated dividend rate. Given the current market
environment, we considered this to be an ideal opportunity to take advantage of
relatively low long-term interest rates and to earn an excess return for our
Common Shareholders consistent with our conservative investment approach. Any
return earned in excess of the stated dividend rate, which is less than the
Trust's average annual return, would directly benefit Common Shareholders;
however, any shortfall from the stated rate would impact the Common Shareholders
in the opposite fashion. Therefore, by taking advantage of the current
relatively low interest rate environment and achieving our investment
objectives, the Preferred Share issuance offers what we believe is a
conservative method of potentially adding wealth for our Common Shareholders.
Furthermore, Common Shareholders stand to receive certain tax benefits as a
result of the Preferred Stock offering. Since taxable income is allocated to the
Preferred Shareholders before Common Shareholders, taxable distributions to
Common Shareholders are not required to the extent they would be if the
Preferred Shares were not outstanding. With the completion of the preferred
offering, the Adviser has agreed to waive the management fee on the incremental
assets during any year in which the net asset value total return on the Trust
does not exceed the stated dividend rate on the Preferred Shares.
LET'S TALK STOCKS
The following are stock specifics on selected holdings of the Multimedia
Trust. Favorable EBITDA (Earnings Before Interest, Taxes, Depreciation and
Amortization) prospects do not necessarily translate into higher stock prices,
but they do express a positive trend which we believe will develop over time.
AT&T Corp. (T - $79.8125 - NYSE), the world's second-largest telephone company,
is a global provider of telecommunications services. Chairman Michael Armstrong
is positioning the company to participate more dynamically in the growth of the
telecommunications industry. AT&T has completed a merger with cable operator TCI
and has announced a strategy to leverage cable assets with telephone services.
The company recently bid for another cable operator, MediaOne Group (UMG -
$63.50 -NYSE), endeavoring to become a major provider of high-speed Internet
access via cable. The introduction of the Digital One rate for its wireless
service has created momentum in its cellular and PCS segments with revenues
growing more than 40%.
Cablevision Systems Corp. (CVC - $74.125 - AMEX) is one of the nation's leading
communications and entertainment companies, with a portfolio of operations that
span state-of-the-art, high-speed multimedia delivery, subscription cable
television services, championship professional sports teams and national cable
television networks. Headquartered in Bethpage, NY, Cablevision serves more than
3.4 million cable customers primarily in three core markets: New York, Boston
and Cleveland. Cablevision is a leader in delivering cutting-edge technological
innovation, such as Optimum TV, to the home. Through its Rainbow Media Holdings
subsidiary, Cablevision manages and develops internationally recognized content
offerings such as the popular national television networks American Movie
Classics, Bravo and The Independent Film Channel. Cablevision has a controlling
interest in New York City's famed Madison Square Garden which includes the arena
complex,
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the NY Knicks, the NY Rangers and the MSG network. Cablevision operates Radio
City Entertainment and holds a long term lease for Radio City Music Hall, home
of the world famous Radio City Rockettes.
Frontier Corp. (FRO - $51.875 - NYSE) is a telecommunications provider operating
various business segments: the nation's fifth largest long distance company, a
local telephone provider in and around Rochester, NY with one million lines, a
CLEC with over 200,000 lines, a nationwide network leased long term from Qwest
and a high-end web hosting business. Frontier has announced plans to merge with
Global Crossing (GBLX - $46.25 - Nasdaq) in a stock for stock transaction for
$62 per Frontier share if GBLX trades between $34.56 and $56.78 before the
transaction is completed. Hamilton, Bermuda-based GBLX also will take on $1.3
billion in FRO debt. The acquisition of FRO is the latest step by GBLX toward
becoming a worldwide phone company.
Liberty Media Group (LMG'A - $52.625 - NYSE) is engaged in businesses which
provide programming services, including production, acquisition and distribution
through all available media formats, and businesses engaged in electronic
retailing, direct marketing and other services. LMG holds interests in globally
branded entertainment networks such as Discovery Channel, USA, QVC, Encore and
STARZ!. Liberty's assets also include interests in international video
distribution businesses; international telephony and domestic wireless; plant
and equipment manufacturers; and other businesses related to broadband services.
Liberty Media Group Class A and Class B common stock are tracking stocks of AT&T
Corp. (T - $79.8125 - NYSE) and are now traded on the New York Stock Exchange.
MediaOne Group Inc. (UMG - $63.50 - NYSE) is one of the nation's leading
broadband services companies. UMG provides more than five million subscribers in
17 states with basic and premium cable television services and has recently
introduced high speed Internet access, telephone services and digital television
in some of its service areas. MediaOne was created from the 1996 union of
telecommunications company MediaOne Group (formerly US West Media Group) and
Continental Cablevision. Headquartered in Englewood, Colorado, MediaOne provides
high quality cable television services. The company is conducting a national
upgrade of its hybrid fiber optic/coaxial cable ("HFC") network to broadband
technology which improves traditional cable service and enables next-generation
products and services. The Group's investment interests include 25% of Time
Warner Entertainment (which includes Warner Brothers Studio and Home Box
Office), 24% of PCS Prime Co. and almost 27% of TeleWest plc. The number three
U.S. cable television company recently agreed to be acquired by AT&T Corp. (T -
$79.8125 - NYSE) for $56 billion.
Rogers Communications Inc. (RG - $18.125 - NYSE) is a Canadian company engaged
in cable operations, cellular (through its 81%-owned Rogers Cantel Mobile
cellular provider) and media. Through Rogers@Home, the company will be one of
the major beneficiaries of the growing penetration of cable high speed access to
the Internet in Canadian homes.
Telephone & Data Systems Inc. (TDS - $56.375 - AMEX) is a diversified
telecommunications company with established cellular and local telephone
operations and a developing personal communications services ("PCS") business.
TDS provides high quality telecommunications services to 3 million customers in
35 states. TDS owns 81.1% of United States Cellular Corp. (USM - $44.00 - AMEX),
the nation's seventh largest cellular telephone company. It also owns 82.4% of
Aerial Communications Inc. (AERL - $7.75 - Nasdaq), TDS's PCS subsidiary
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which owns the licenses to provide PCS service in six major trading areas
("MTAs") encompassing approximately 27.6 million population equivalents. On
December 8, 1998, TDS announced its intent to spin-off its Aerial stake to
existing TDS shareholders on a tax-free basis and focus on its core wireline and
cellular operations. The transaction is expected to close by the end of the
year.
Time Warner Inc. (TWX - $71.0625 - NYSE), with its 1996 acquisition of Turner
Broadcasting System, became entrenched as the global leader in media and
entertainment with interests in filmed entertainment, television production and
broadcasting, recorded music, cable television programming, magazine and book
publishing, direct marketing and cable television systems. The combined
companies have almost $27 billion in revenues and $4.5 billion in EBITDA. Time
Warner controls a host of powerful brands, such as Warner Brothers, CNN, HBO,
Cinemax and Time and People magazines. Under the leadership of Chairman Gerald
Levin and Vice Chairman Ted Turner, the company is focused on reducing its debt
(now approximately $11 billion) and simplifying its capital structure.
USA Networks Inc. (USAI - $35.8125 - Nasdaq), through its subsidiaries, engages
in diversified media and electronic commerce businesses that include: electronic
retailing, ticketing operations and television broadcasting. Chairman and CEO
Barry Diller has brought together under one umbrella: the USA Network, the
Sci-Fi Channel, USA Networks Studios, USA Broadcasting, The Home Shopping
Network and the Ticketmaster Group. The plan is to integrate these assets,
leveraging programming, production capabilities and electronic commerce across
this strong distribution platform.
Viacom Inc. (VIA - $83.3125 - AMEX), long a major provider of entertainment
"content", has evolved into one of the world's dominant media companies. The
addition of Paramount Communications, Blockbuster Entertainment (acquired in
1994), along with publisher Simon & Schuster, makes Viacom one of the largest
entertainment and publishing companies. Non-core assets are being divested and
debt has been reduced to approximately $8 billion. Viacom is focusing on global
expansion of its media franchises. Viacom is particularly well-positioned in
music (notably MTV) and cable networks (such as Nickelodeon).
DIVIDENDS
The Trust recently distributed a dividend of $0.55 per share to Common
Shareholders on December 28, 1998. For the twelve months ended March 31, 1999,
the Trust distributed a total of $0.80 per share to Common Shareholders. Our
Preferred Shareholders were recently paid a dividend of $0.495 per share on
March 29, 1999. For the twelve months ended March 31, 1999, the Preferred
Shareholders received a total distribution of $1.98 per share, which is the
annual dividend rate on the Preferred Shares.
DAILY NAVS NOW DISTRIBUTED BY NASDAQ
Since our inception, we have made the net asset value available on nightly
recordings through 1-800-GABELLI. Now, Nasdaq is also disseminating the daily
per share net asset values (NAVs) for the Gabelli Global Multimedia Trust, which
is traded on the New York Stock Exchange. The NAV ticker symbol via Nasdaq is
"XGGTX".
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The NAVs are available through any stock quote lookup service and on broker
Nasdaq level one terminals. The dissemination of daily NAVs allows investors and
brokers to better track the long-term performance of the Fund's underlying
portfolio. We support Nasdaq's efforts in making closed-end funds' NAVs
available on a daily basis.
INTERNET
You can now visit us on the Internet. Our home page at
http://www.gabelli.com contains information about Gabelli Asset Management Inc.,
the Gabelli Mutual Funds, IRAs, 401(k)s, quarterly reports, closing prices and
other current news. You can send us e-mail at [email protected].
IN CONCLUSION
During the quarter, portfolio returns exceeded our expectations. We do not
expect such generous returns every quarter, but we remain confident that
selected telecommunications and media stocks should continue to be among the
market's leading long term performers.
Sincerely,
/s/ MARIO J. GABELLI
MARIO J. GABELLI
President and Chief Investment Officer
April 30, 1999
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
TOP TEN HOLDINGS
MARCH 31, 1999
--------------
<S> <C>
Liberty Media Group AT&T Corp.
USA Networks Inc. Time Warner, Inc.
Viacom Inc. MediaOne Group, Inc.
Telphone & Data Systems Corp Ascent Entertainment Group
Cablevision Systems Corp. Rogers Communication Inc.
- --------------------------------------------------------------------------------
</TABLE>
NOTE: The views expressed in this report reflect those of the portfolio manager
only through the end of the period stated in this report. The manager's views
are subject to change at any time based on market and other conditions.
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THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS -- MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ -----
<C> <S> <C>
COMMON STOCKS - 92.0%
COPYRIGHT/CREATIVITY COMPANIES - 36.1%
ADVERTISING - 0.1%
4,000 Bowlin Outdoor Advertising & Travel
Inc. ............................. $ 28,000
200 Havas Advertising SA................ 38,790
100 Lamar Advertising Co. .............. 3,394
200 Publicis SA......................... 33,063
------------
103,247
------------
CABLE PROGRAMMERS - 6.1%
15,000 CANAL+, Sponsored ADR+.............. 754,306
6,000 Flextech plc+....................... 76,552
290,000 USA Networks Inc.+.................. 10,385,625
------------
11,216,483
------------
COMPUTER SOFTWARE AND SERVICES - 0.9%
1,000 Activision Inc.+.................... 12,375
180 America Online Inc.+................ 26,280
3,000 Atlus Co. Ltd. ..................... 30,908
12,450 CDnow Inc.+......................... 200,756
2,000 EarthLink Network Inc.+............. 120,000
500 Electronic Arts Inc.+............... 23,750
14,000 H&R Block Inc. ..................... 663,250
500 Intel Corp. ........................ 59,562
2,000 Microsoft Corp.+.................... 179,250
4,000 Mobius Management Systems+.......... 84,000
100 Pixar Inc.+......................... 3,938
11,000 PLATINUM Technology International
Inc.+............................. 280,500
500 Ticketmaster Online-City Search
Inc.+............................. 16,812
------------
1,701,381
------------
CONSUMER PRODUCTS - 0.0%
1,000 Mattel Inc. ........................ 24,875
------------
DIVERSIFIED PUBLISHERS - 7.7%
10,000 American Media Inc., Cl. A+......... 55,000
10,000 Arnoldo Mondadori Editore SpA....... 149,649
30,000 Belo (A.H.) Corp., Cl. A............ 547,500
5,000 Central Newspapers Inc., Cl. A...... 155,625
5,000 Dow Jones & Co. Inc. ............... 235,937
700 Hachette Filipacchi Medias.......... 163,447
8,000 Harcourt General Inc. .............. 354,500
15,000 Harte-Hanks Communications Inc. .... 411,562
1,000 Hollinger International Inc. ....... 13,562
4,500 Houghton Mifflin Co. ............... 210,938
58,000 Independent Newspapers Ltd., ORD.... 263,210
7,000 Knight-Ridder Inc. ................. 350,000
22,000 Lee Enterprises Inc. ............... 638,000
20,000 McClatchy Newspapers Inc., Cl. A.... 671,250
9,000 McGraw-Hill Companies Inc. ......... 490,500
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ -----
<C> <S> <C>
10,000 Media General Inc., Cl. A........... $ 465,000
18,000 Meredith Corp. ..................... 565,875
115,000 Nation Multimedia Group............. 30,009
100,000 New Straits Times Press Berhad...... 89,474
125,000 Oriental Press Group ORD............ 11,291
103,000 Penton Media Inc. .................. 2,317,500
10,000 Playboy Enterprises Inc., Cl. A+.... 201,250
110,900 Post Publishing Co. Ltd.+........... 112,214
9,000 PRIMEDIA Inc.+...................... 126,000
26,000 Pulitzer Publishing Co. ............ 1,051,375
68,000 Reader's Digest Association Inc.,
Cl. B............................. 1,870,000
34,452 Singapore Press Holdings Ltd. ...... 381,137
250,000 South China Morning Post Holdings
ORD............................... 138,719
300 SPIR Communication.................. 17,569
50,000 Thomas Nelson Inc. ................. 500,000
4,500 Times Mirror Co., Cl. A............. 243,281
50,000 Times Publishing Ltd. .............. 75,297
15,000 Tribune Co. ........................ 981,563
10,000 United News & Media plc, ADR........ 189,375
400 Wiley (John) & Sons Inc., Cl. A..... 16,375
1,000 Wolters Kluwer NV................... 181,524
2,000 Ziff-Davis Inc. .................... 43,000
------------
14,318,508
------------
ENTERTAINMENT PRODUCTION - 9.2%
295,000 Ascent Entertainment Group Inc.+.... 3,226,562
2,522 EMI Group plc....................... 18,002
10,000 EMI Group plc, Sponsored ADR........ 138,750
7,000 Grammy Entertainment plc+........... 22,926
3,500 Granada Group plc................... 70,895
7,000 GTECH Holdings Corp.+............... 170,625
2,000 Harvey Entertainment Co.+........... 8,750
233,000 Liberty Media Group Cl. A+.......... 12,261,625
300 NRJ SA.............................. 60,292
14,877 People's Choice TV Corp.+........... 45,561
2,000 Powerhouse Technologies Inc. ....... 34,375
3,000 Princeton Video Image Inc.+......... 15,937
100,000 Shaw Brothers (Hong Kong) Ltd. ..... 46,455
77,000 Spelling Entertainment Group
Inc.+............................. 673,750
5,000 TV Guide Inc.+ ..................... 184,375
------------
16,978,880
------------
GLOBAL MEDIA & ENTERTAINMENT - 9.5%
481 Boston Celtics Ltd. ................ 6,103
35,000 Fox Entertainment Group Inc. ....... 949,375
55,000 Grupo Televisa SA, GDR+............. 1,725,625
21,000 News Corp. Ltd., ADS................ 619,500
35,000 Seagram Co. Ltd. ................... 1,750,000
1,000 Sony Corp., ADR..................... 91,312
52,000 Time Warner Inc.+................... 3,695,250
</TABLE>
11
<PAGE> 14
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ -----
<C> <S> <C>
COMMON STOCKS (CONTINUED)
COPYRIGHT/CREATIVITY COMPANIES (CONTINUED)
GLOBAL MEDIA & ENTERTAINMENT (CONTINUED)
100,000 Viacom Inc., Cl. A+................. $ 8,331,250
9,000 Walt Disney Co. .................... 280,125
------------
17,448,540
------------
HOTELS AND GAMING - 2.2%
10,000 Aztar Corp.+........................ 48,125
5,000 Churchhill Downs Inc. .............. 140,000
115,000 Gaylord Entertainment Co., Cl. A.... 2,788,750
143 GLC Limited+........................ 1,448
20,000 Hilton Hotels Corp. ................ 281,250
60,847 Ladbroke Group plc.................. 278,171
10,000 Mirage Resorts Inc.+................ 212,500
4,630 MGM Grand Inc.+..................... 60,769
20,000 Park Place Entertainment Corp.+..... 151,250
2,500 Quintel Entertainment Inc.+......... 2,187
4,000 Starwood Hotels and Resorts
Worldwide Inc. ................... 114,250
------------
4,078,700
------------
INFORMATION PUBLISHING - 0.4%
24,000 Berlitz International Inc.+......... 543,000
8,000 Data Broadcasting Corp.+............ 111,000
1,000 Dun & Bradstreet Corp. ............. 35,625
500 Scholastic Corp.+................... 24,437
------------
714,062
------------
TOTAL COPYRIGHT/CREATIVITY COMPANIES........................
66,584,676
------------
DISTRIBUTION COMPANIES - 55.9%
BROADCASTING - 8.9%
70,000 Ackerley Group Inc. ................ 1,185,625
8,550 American Tower Systems, Cl. A....... 209,475
2,500 Audiofina SA........................ 100,433
2,000 BHC Communications Inc., Cl. A...... 245,500
2,000 British Sky Broadcasting Group,
Sponsored ADR..................... 102,500
18,000 CanWest Global Communications
Corp. ............................ 238,490
2,000 Carlton Communications plc,
Sponsored ADR..................... 97,750
5,000 CBS Corporation..................... 204,688
1,000 Chancellor Media Corp., Cl. A+...... 47,125
40,219 Chris-Craft Industries Inc. ........ 1,835,006
500 Clear Channel Communications
Inc.+............................. 33,531
4,000 Cox Radio Inc., Cl. A+.............. 205,000
4,000 CTV Inc.+........................... 52,468
500 Emmis Broadcasting Corp., Cl. A+.... 25,000
200 Europe 1 Communication.............. 50,503
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ -----
<C> <S> <C>
20,120 Fisher Companies Inc. .............. $ 1,166,960
1,000 General Electric Co. ............... 110,625
13,125 Gray Communications Systems Inc. ... 218,203
60,000 Gray Communications Systems Inc.,
Cl. B............................. 802,500
7,000 Groupe AB SA, ADR+.................. 15,750
5,000 Grupo Radio Centro, SA de CV, ADR... 27,500
42,618 Hearst-Argyle Television Inc.+...... 1,049,465
5,000 Infinity Broadcasting Corp.+........ 128,750
500 Jacor Communications Inc.+.......... 38,000
33,000 King World Productions Inc.+........ 1,008,562
700 LaGardere S.C.A. ................... 22,759
42,100 Liberty Corp. ...................... 2,207,619
400 Metropole TV M6 SA.................. 64,830
1,100 Nippon Television Network........... 423,595
5,000 NTN Communications Inc.+............ 3,438
5,800 Pathe SA............................ 1,491,523
55,000 Paxson Communications Corp., Cl.
A+................................ 470,938
1,220 SAGA Communications Inc., Cl. A+.... 21,807
2,000 SBS Broadcasting S.A.+.............. 64,250
43,000 Sistem Televisyen Malaysia Berhad... 11,089
50,000 Television Broadcasting Ltd. ORD.... 182,270
2,500 Television Francaise 1.............. 469,748
52,000 Tokyo Broadcasting System........... 660,896
3,000 TV Azteca, SA de C.V.+.............. 18,750
10,500 United Television Inc. ............. 1,092,000
------------
16,404,921
------------
BUSINESS SERVICES - 1.5%
110,000 BA Merchant Services Inc.+.......... 2,241,250
3,000 Checkfree Holdings Corp. ........... 127,687
5,000 Convergys Corp.+.................... 85,625
2,000 IMS Health Inc. .................... 66,250
3,333 Nielsen Media Research Inc. ........ 82,283
9,400 R.H. Donnelley Corp. ............... 145,113
------------
2,748,208
------------
CABLE - 9.1%
70,000 Cablevision Systems Corp., Cl. A+... 5,188,750
36,000 Century Communications Corp., Cl.
A+................................ 1,671,750
5,000 Comcast Corp., Cl. A................ 307,500
1,000 Comcast Corp., Cl. A Special........ 62,937
57,000 MediaOne Group Inc. ................ 3,619,500
10,000 Mercom Inc.+........................ 120,000
4,498 NTL Inc.+........................... 366,025
170,000 Rogers Communications Inc., Cl.
B+................................ 3,081,250
300,000 Tele-Communications International
Inc., Cl. A+...................... 333,000
12,000 Telewest Communications plc,
Sponsored ADR+.................... 526,500
</TABLE>
12
<PAGE> 15
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ -----
<C> <S> <C>
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
CABLE (CONTINUED)
30,000 United International Holdings Inc.,
Cl. A+............................ $ 1,305,000
10,000 Videotron Groupe.................... 195,429
1,000 Wireless One Inc.+.................. 670
------------
16,778,311
------------
CONSUMER SERVICES - 0.7%
10,000 Allied Domecq plc................... 74,405
20,000 Brylane Inc.+....................... 485,000
20,000 Cendant Corp. ...................... 315,000
15,000 Lillian Vernon Corp. ............... 180,000
2,000 Lowe's Companies Inc. .............. 121,000
500 Department 56 Inc.+................. 15,219
6,000 Travel Services Intl. Inc. ......... 63,000
------------
1,253,624
------------
ENTERTAINMENT DISTRIBUTION - 1.0%
6,896 AMC Entertainment Inc............... 106,026
26,000 GC Companies Inc.+ ................. 817,375
10,000 Loews Cineplex Entertainment+....... 99,375
5,500 Shaw Communications Inc.+........... 177,031
19,500 Shaw Communications Inc., Cl. B
(Toronto)+........................ 626,532
2,000 TCI Music Inc.+..................... 10,250
------------
1,836,589
------------
EQUIPMENT - 4.5%
7,000 Advanced Micro Devices+............. 108,500
2,100 Amphenol Corp.+..................... 80,325
2,000 CommScope Inc.+..................... 41,875
1,000 Gemstar International Group Ltd. ... 75,250
1,000 Koninklijke Philips Electronics
N.V. ............................. 82,437
2,500 L-3 Communications Hldgs Inc. ...... 115,625
3,500 Lucent Technologies Inc. ........... 377,125
2,000 Northern Telecom Ltd. .............. 124,250
150,000 Oak Technology Inc.+................ 459,375
25,000 Reltec Corp. ....................... 735,937
3,000 Scientific-Atlanta Inc. ............ 81,750
165,200 Xylan Corp. ........................ 6,081,424
------------
8,363,873
------------
INTERNATIONAL TELEPHONE - 6.5%
45,000 BC TELECOM Inc. .................... 1,103,014
36,000 BCE Inc. ........................... 1,595,250
12,000 BCT Telus Communications Inc., Cl.
A................................. 284,200
5,000 BHI Corp. .......................... 140,000
38,000 Cable & Wireless plc, Sponsored
ADR............................... 1,403,625
27,000 Compania de Telecomunicaciones de
Chile SA, Sponsored ADR........... 636,187
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ -----
<C> <S> <C>
500 CPT Telefonica del Peru SA,
Sponsored ADR..................... $ 6,375
200,000 CPT Telefonica del Peru, Cl. B...... 257,212
2,000 Deutsche Telekom AG, ADR+........... 80,875
15,000 Embratel Participacoes SA+.......... 250,313
1,000 France Telecom SA, Sponsored ADR.... 80,688
42,000 GST Telecommunications Inc.+........ 459,375
90 Japan Telecom Co. Ltd. ............. 1,292,066
500 Magyar Tavkozlesi Rt, Sponsored
ADS............................... 13,375
10 Nippon Telegraph & Telephone
Corp. ............................ 97,961
22,000 Philippine Long Distance Telephone
Co. .............................. 569,250
7,000 PT Indosat ADR...................... 90,562
4,000 PT Telekomunikasi Indonesia......... 25,500
6,000 Quebec-Telephone.................... 71,746
4,000 Rostelecom, Sponsored ADR........... 18,750
3,300 Tele Centro Sul Participacoes SA+... 152,419
3,000 Telecom Argentina Stet-France
Telecom SA, Sponsored ADR......... 82,313
1,000 Telecom Corp. of New Zealand Ltd.,
ADR............................... 39,000
16,500 Telecomunicacoes Brasileiras SA
(Telebras), Sponsored ADR......... 2,320
3,000 Telefonica de Argentina SA,
Sponsored ADR..................... 90,750
14,000 Telefonica de Espana, Sponsored
ADR............................... 1,788,500
12,000 Telefonos De Mexico SA, Cl. L,
ADR............................... 786,000
16,500 Tele Norte Leste Participacoes
SA+............................... 253,687
16,500 Telesp Participacoes SA............. 340,313
600 Telestra Corp., ADR+................ 63,300
------------
12,074,926
------------
SATELLITE - 1.6%
300 Asia Satellite Telecommunications
Holdings Ltd., Sponsored ADR...... 4,612
40,000 COMSAT Corp. ....................... 1,157,500
5,000 EchoStar Communications Corp., Cl.
A+................................ 408,125
2,000 General Motors Corp., Cl. H......... 100,875
4,000 Globalstar Telecommunications+...... 55,500
15,008 Loral Space & Communications Ltd.... 216,678
20,000 Pegasus Communications Corp.+....... 560,000
45,000 TCI Satellite Entertainment Inc.,
Cl. A+............................ 29,531
25,000 U.S. Satellite Broadcasting Co.+.... 428,125
------------
2,960,946
------------
TELECOMMUNICATIONS - 2.8%
2,000 Allegiance Telecom Inc. ............ 50,000
4,000 Alltel Corp. ....................... 249,500
4,000 Bruncor Inc. ....................... 64,127
15,000 CoreComm Ltd. ...................... 551,250
10,000 Electric Lightwave Inc., Cl. A+..... 91,250
40,000 Frontier Corp. ..................... 2,075,000
1,500 Global Telesystems Group Inc. ...... 83,906
</TABLE>
13
<PAGE> 16
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ -----
<C> <S> <C>
COMMON STOCKS (CONTINUED)
DISTRIBUTION COMPANIES (CONTINUED)
TELECOMMUNICATIONS (CONTINUED)
1,305 Hellenic Telecommunication
Organization SA (OTE)............. $ 31,745
10,000 Metromedia International Group
Inc.+............................. 48,750
3,000 NewTel Enterprises Ltd. ............ 73,534
50,000 RCN Corporation+.................... 1,678,125
3,000 Telegroup Inc.+..................... 480
12,000 Tel-Save Holdings Inc.+............. 125,250
3,000 USN Communications Inc. ............ 105
------------
5,123,022
------------
TELECOMMUNICATIONS - LONG DISTANCE - 3.2%
50,000 AT&T Corp. ......................... 3,990,625
5,800 MCI Worldcom Inc. .................. 513,663
7,000 Sprint Corp. ....................... 686,875
3,000 STARTEC Global Communications
Corp.+............................ 23,250
22,000 Viatel Inc. ........................ 627,000
------------
5,841,413
------------
U.S. REGIONAL OPERATORS - 2.0%
5,000 Cincinnati Bell Inc. ............... 112,188
47,428 Citizens Utilities Co., Cl. B+...... 367,567
48,834 Commonwealth Telephone Enterprises
Inc.+............................. 1,777,877
11,000 GTE Corp. .......................... 665,500
16,000 SBC Communications Inc. ............ 754,000
2,000 US WEST Communications Group........ 110,125
------------
3,787,257
------------
WIRELESS COMMUNICATIONS - 13.2%
176,000 Aerial Communications Inc.+......... 1,364,000
10,000 BCE Mobile Communications Inc.+..... 267,333
3,000 Cable & Wireless Communications plc,
ADR............................... 169,688
10,000 Cellular Comm of Puerto Rico........ 270,000
27,000 Century Telephone Enterprises
Inc. ............................. 1,896,750
10,000 CommNet Cellular Inc.+.............. 160,625
20,000 Iridium World Communications
Ltd. ............................. 302,500
14,800 Leap Wireless International Inc. ... 190,550
8,447 NEXTEL Communications Inc., Cl. A+.. 309,371
20 NTT Mobile Communications Network
Inc. ............................. 988,051
210,000 Omnipoint Corp.+.................... 3,031,875
14,880 Price Communications Corp.+......... 165,540
1,000 Qualcomm Inc.+...................... 124,375
107,000 Rogers Cantel Mobile Communications
Inc., Cl. B+...................... 1,932,688
</TABLE>
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ -----
<C> <S> <C>
40,000 Rural Cellular Corp., Cl. A+........ $ 530,000
26,480 SK Telecom Co. Ltd., ADR............ 322,725
3,500 Sprint Corp. (PCS Group)............ 155,094
1,650 Tele Celular Sul Participacoes SA... 31,556
5,500 Tele Centro Oeste Celular
Participacoes SA+................. 20,281
300,000 Telecom Italia Mobile SpA........... 2,019,455
330 Tele Leste Celular Participacoes
SA................................ 10,560
825 Tele Nordeste Celular Participacoes
SA................................ 18,356
330 Tele Norte Celular Participacoes
SA................................ 9,818
117,000 Telephone and Data Systems Inc...... 6,595,875
6,000 Teligent Inc., Cl. A+............... 249,750
825 Telemig Celular Participacoes SA+... 21,605
3,300 Tele Sudeste Celular Participacoes
SA+............................... 66,825
6,600 Telesp Celular Participacoes SA+.... 138,188
18,000 Total Access Communications plc..... 38,880
20,000 U.S. Cellular Corp.+................ 880,000
40,000 Vanguard Cellular System Inc. ...... 1,092,500
3,500 Vimpel-Communications, Sponsored
ADR+.............................. 54,250
16,000 Western Wireless Corp.+............. 580,000
9,000 WinStar Communications Inc.+........ 327,094
------------
24,336,158
------------
UTILITIES - 0.9%
10,000 Cilcorp Inc. ....................... 600,625
10,000 El Paso Electric Company+........... 76,250
10,000 New England Electric System......... 485,000
10,000 Orange & Rockland Utilities......... 574,375
------------
1,736,250
------------
TOTAL DISTRIBUTION COMPANIES................................ 103,245,498
------------
TOTAL COMMON STOCKS......................................... 169,830,174
------------
PREFERRED STOCKS - 2.9%
BROADCASTING - 0.2%
9,000 Granite Broadcasting Corp., 1.9375%
Cv. Pfd........................... 298,125
------------
CONSUMER SERVICES - 0.1%
6,000 Cendant Corp., 1.30% Cv. Pfd........ 137,625
------------
GLOBAL MEDIA AND ENTERTAINMENT - 0.9%
62,765 News Corp. Ltd., Sponsored ADR,
Pfd............................... 1,726,038
------------
U.S. REGIONAL OPERATORS - 0.9%
41,000 Citizens Utilities Co., 5.00% Cv.
Pfd............................... 1,650,250
------------
</TABLE>
14
<PAGE> 17
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
PORTFOLIO OF INVESTMENTS (CONTINUED) -- MARCH 31, 1999 (UNAUDITED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
MARKET
SHARES VALUE
------ -----
<C> <S> <C>
PREFERRED STOCKS (CONTINUED)
WIRELESS COMMUNICATIONS - 0.8%
15,000 AirTouch Communications Inc., Ser.
B, 6.00% Cv. Pfd.................. $ 1,181,250
3,000 AirTouch Communications Inc., Ser.
C, 4.25% Cv. Pfd.................. 403,500
------------
1,584,750
------------
TOTAL PREFERRED STOCKS...................................... 5,396,788
------------
COMMON STOCK WARRANTS AND RIGHTS - 0.0%
200 Havas Advertising, Warrants, expires
05/13/01.......................... 380
------------
</TABLE>
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
------
<C> <S> <C>
CORPORATE BONDS - 0.4%
CABLE - 0.1%
200,000(d) Rogers Communications Inc., Sub.
Deb. Cv., 7.50% due 09/01/99... 174,230
------------
COMPUTER SOFTWARE AND SERVICES - 0.0%
$ 50,000 BBN Corp., Sub. Deb. Cv., 6.00%
due 04/01/12 (b)............... 48,563
------------
EQUIPMENT - 0.0%
100,000 Trans-Lux Corp., Deb. Cv., 7.50%
due 12/01/06................... 95,375
------------
GLOBAL MEDIA AND ENTERTAINMENT - 0.1%
20,000 Boston Celtics, Deb., 6.00% due
06/30/38....................... 12,175
100,000 Viacom Inc., Sub. Deb., 8.00% due
07/07/06....................... 104,000
------------
116,175
------------
HOTELS AND GAMING - 0.2%
300,000 Hilton Hotels Corp., Deb. Cv.,
5.00% due 05/15/06............. 283,500
------------
TOTAL CORPORATE BONDS....................................... 717,843
------------
U.S. TREASURY BILLS - 6.9%
12,752,000 4.31% to 4.73%++
due 04/15/99 to 06/24/99....... 12,717,754
------------
TOTAL INVESTMENTS
(Cost $121,719,869) (a) - 102.2%.......................... 188,662,939
============
</TABLE>
<TABLE>
<CAPTION>
MARKET
VALUE
-----
<C> <S> <C>
OTHER ASSETS, LIABILITIES AND
LIQUIDATION VALUE OF CUMULATIVE
PREFERRED STOCK - (19.1%)................................. $(35,285,776)
------------
NET ASSETS - COMMON STOCK
(10,844,915 common shares outstanding) - 83.1%............ 153,377,163
------------
NET ASSETS - CUMULATIVE
PREFERRED STOCK
(1,250,000 preferred shares outstanding) - 16.9%.......... 31,250,000
------------
TOTAL NET ASSETS - 100.0%................................... $184,627,163
============
NET ASSET VALUE PER COMMON SHARE
($153,377,163 / 10,844,915 shares outstanding)............ $14.14
============
</TABLE>
<TABLE>
<CAPTION>
SCHEDULE OF FORWARD FOREIGN
EXCHANGE CONTRACTS
SETTLEMENT UNREALIZED
DATE DEPRECIATION
---- ------------
<S> <C> <C>
FORWARD FOREIGN EXCHANGE CONTRACTS TO DELIVER
2,293,242(c) Hong Kong Dollars in
exchange for
USD $295,571............. 05/24/99 ($571)
============
</TABLE>
- ----------------------
<TABLE>
<S> <C> <C>
(a) For Federal tax purposes:
Aggregate cost....................... $121,719,869
============
Gross unrealized appreciation........ $ 71,157,935
Gross unrealized depreciation........ (4,214,865)
------------
Net unrealized appreciation.......... $ 66,943,070
============
(b) Security fair valued as determined by the Board of
Trustees.
(c) Principal amount denoted in Hong Kong Dollars.
(d) Principal amount denoted in Canadian Dollars.
+ Non-income producing security.
++ Represents annualized yield at date of purchase.
ADR -- American Depositary Receipt
ADS -- American Depositary Share
USD -- United States Dollars
ORD -- Ordinary Share
GDR -- Global Depositary Receipt
</TABLE>
<TABLE>
<CAPTION>
% OF
MARKET MARKET
GEOGRAPHIC DIVERSIFICATION VALUE VALUE
-------------------------- ------ ------------
<S> <C> <C>
United States....................... 80.5% $151,941,243
Canada.............................. 6.2 11,790,317
Europe.............................. 5.9 11,059,855
Asia/Pacific Rim.................... 4.7 8,784,571
Latin America....................... 2.7 5,086,953
------ ------------
Net Assets........................ 100.0% $188,662,939
====== ============
</TABLE>
15
<PAGE> 18
AUTOMATIC DIVIDEND REINVESTMENT AND VOLUNTARY CASH PURCHASE PLAN
ENROLLMENT IN THE PLAN
It is the policy of The Gabelli Global Multimedia Trust Inc. ("Multimedia
Trust") to automatically reinvest dividends. As a "registered" shareholder you
automatically become a participant in the Multimedia Trust's Automatic Dividend
Reinvestment Plan (the "Plan"). The Plan authorizes the Multimedia Trust to
issue shares to participants upon an income dividend or a capital gains
distribution regardless of whether the shares are trading at a discount or a
premium to net asset value. All distributions to shareholders whose shares are
registered in their own names will be automatically reinvested pursuant to the
Plan in additional shares of the Multimedia Trust. Plan participants may send
their stock certificates to State Street Bank and Trust Company to be held in
their dividend reinvestment account. Registered shareholders wishing to receive
their distribution in cash must submit this request in writing to:
The Gabelli Global Multimedia Trust Inc.
c/o State Street Bank and Trust Company
P.O. Box 8200
Boston, MA 02266-8200
Shareholders requesting this cash election must include the shareholder's name
and address as they appear on the share certificate. Shareholders with
additional questions regarding the Plan may contact State Street Bank and Trust
Company at 1 (800) 336-6983.
Shareholders wishing to liquidate reinvested shares held at State Street Bank
and Trust Company must do so in writing or by telephone. Please submit your
request to the above mentioned address or telephone number. Include in your
request your name, address and account number. The cost to liquidate shares is
$2.50 per transaction as well as the brokerage commission incurred. Brokerage
charges are expected to be less than the usual brokerage charge for such
transactions.
If your shares are held in the name of a broker, bank or nominee, you should
contact such institution. If such institution is not participating in the Plan,
your account will be credited with a cash dividend. In order to participate in
the Plan through such institution, it may be necessary for you to have your
shares taken out of "street name" and re-registered in your own name. Once
registered in your own name your dividends will be automatically reinvested.
Certain brokers participate in the Plan. Shareholders holding shares in "street
name" at such participating institutions will have dividends automatically
reinvested. Shareholders wishing a cash dividend at such institution must
contact their broker to make this change.
The number of shares of Common Stock distributed to participants in the Plan
in lieu of cash dividends is determined in the following manner. Under the Plan,
whenever the market price of the Multimedia Trust's Common Stock is equal to or
exceeds net asset value at the time shares are valued for purposes of
determining the number of shares equivalent to the cash dividends or capital
gains distribution, participants are issued shares of Common Stock valued at the
greater of (i) the net asset value as most recently determined or (ii) 95% of
the then current market price of the Multimedia Trust's Common Stock. The
valuation date is the dividend or distribution payment date or, if that date is
not a New York Stock Exchange trading day, the next trading day. If the net
asset value of the Common Stock at the time of valuation exceeds the market
price of the Common Stock, participants will receive shares from the Multimedia
Trust valued at market price. If the Multimedia Trust should declare a dividend
or capital gains distribution payable only in cash. State Street will buy Common
Stock in the open market, or on the New York Stock Exchange or elsewhere, for
the participants' accounts, except that State Street will endeavor to terminate
purchases in the open market and cause the Multimedia Trust to issue shares at
net asset value if, following the commencement of such purchases, the market
value of the Common Stock exceeds the then current net asset value.
The automatic reinvestment of dividends and capital gains distributions will
not relieve participants of any income tax which may be payable on such
distributions. A participant in the Plan will be treated for Federal income tax
purposes as having received, on a dividend payment date, a dividend or
distribution in an amount equal to the cash the participant could have received
instead of shares.
The Multimedia Trust reserves the right to amend or terminate the Plan as
applied to any voluntary cash payments made and any dividend or distribution
paid subsequent to written notice of the change sent to the members of the Plan
at least 90 days before the record date for such dividend or distribution. The
Plan also may be amended or terminated by State Street on at least 90 days'
written notice to participants in the Plan.
VOLUNTARY CASH PURCHASE PLAN
The Voluntary Cash Purchase Plan is yet another vehicle for our shareholders
to increase their investment in the Multimedia Trust. In order to participate in
the Voluntary Cash Purchase Plan, shareholders must have their shares registered
in their own name and participate in the Dividend Reinvestment Plan.
Participants in the Voluntary Cash Purchase Plan have the option of making
additional cash payments to State Street Bank and Trust Company for investments
in the Multimedia Trust's shares at the then current market price. Shareholders
may send an amount from $250 to $10,000. State Street Bank and Trust Company
will use these funds to purchase shares in the open market on or about the 15th
of each month. Beginning June 1,1999, purchase will be made on or about the 1st
and 15th of each month. State Street Bank and Trust Company will charge each
shareholder who participates $0.75, plus a pro rata share of the brokerage
commissions. Brokerage charges for such purchases are expected to be less than
the usual brokerage charge for such transactions. It is suggested that any
voluntary cash payments be sent to State Street Bank and Trust Company, P.O. Box
8200, Boston, MA 02266-8200 such that State Street receives such payments
approximately 10 days before the 15th of the month. Funds not received at least
five days before the investment date shall be held for investment in the
following month. A payment may be withdrawn without charge if notice is received
by State Street Bank and Trust Company at least 48 hours before such payment is
to be invested.
For more information regarding the Dividend Reinvestment Plan and Voluntary
Cash Purchase Plan, brochures are available by calling (914) 921-5070 or by
writing directly to the Multimedia Trust.
16
<PAGE> 19
DIRECTORS AND OFFICERS
THE GABELLI GLOBALMULTIMEDIA TRUST INC.
One Corporate Center, Rye, NY 10580-1434
DIRECTORS
Mario J. Gabelli, CFA
Chairman & Chief Investment Officer
Dr. Thomas E. Bratter
President, John Dewey Academy
Bill Callaghan
President, Bill Callaghan Associates
Felix J. Christiana
Former Senior Vice President
Dollar Dry Dock Savings Bank
James P. Conn
Managing Director/Chief Investment Officer,
Financial Security Assurance Holdings Ltd.
Karl Otto Pohl
Former President, Deutsche Bundesbank
Anthony R. Pustorino
Certified Public Accountant
Professor, Pace University
Salvatore J. Zizza
Chairman
The Bethlehem Corp.
OFFICERS
Mario J. Gabelli, CFA
President & Chief Investment Officer
Bruce N. Alpert
Vice President & Treasurer
Peter W. Latartara
Vice President
James E. McKee
Secretary
INVESTMENT ADVISOR
Gabelli Funds, LLC
One Corporate Center
Rye, New York 10580-1434
CUSTODIAN
State Street Bank and Trust Company
COUNSEL
Willkie Farr & Gallagher
TRANSFER AGENT AND REGISTRAR
State Street Bank and Trust Company
STOCK EXCHANGE LISTING
<TABLE>
<CAPTION>
Common 7.92% Preferred
------ -----------------
<S> <C> <C>
NYSE-Symbol: GGT GGT Pr
Shares Outstanding: 10,844,915 1,250,000
</TABLE>
The Net Asset Value appears in the Publicly Traded
Funds column, under the heading "Specialized Equity
Funds," in Sunday's The New York Times and
"Specialized Equity Funds" in Monday's The Wall
Street Journal. It is also listed in Barron's Mutual
Funds/Closed End Funds section under the heading
"Specialized Equity Funds".
The Net Asset Value may be obtained each day by
calling (914) 921-5071.
- ------------------------------------------------
For general information about the Gabelli Funds,
call 1-800-GABELLI (1-800-422-3554), fax us
at 914-921-5118, visit Gabelli Funds' Internet
homepage at: http://www.gabelli.com
or e-mail us at: [email protected]
- ------------------------------------------------
Notice is hereby given in accordance with Section 23(c) of the Investment
Company Act of 1940, as amended, that the Multimedia Trust may from time to time
purchase shares of its capital stock in the open market when the Multimedia
Trust shares are trading at a discount of 10% or more from the net asset value
of the shares.
<PAGE> 20
THE GABELLI GLOBAL MULTIMEDIA TRUST INC.
One Corporate Center
Rye, NY 10580-1434
(914) 921-5070
http:/ /www.gabelli.com
FIRST QUARTER REPORT
MARCH 31, 1999
GGT 03/99
