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News > Companies
Time Warner grows in 3Q
October 13, 1999: 10:45 a.m. ET

Cable, magazine advertising boosts income above forecasts
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NEW YORK (CNNfn) - Time Warner Inc. topped Wall Street forecasts Wednesday with its third-quarter earnings from operations, with the nation's largest media company crediting advertising revenue growth in its cable networks and magazines for the turnaround from a year earlier.
     Earnings from operations, excluding pretax gains, were 8 cents a diluted share in the latest quarter, double the 4 cents a share consensus of analysts surveyed by First Call Corp. A year earlier, the company lost 3 cents a share.
     Including $477 million in pretax gains mainly from the sale of cable assets, New York-based Time Warner -- the parent of CNNfn -- earned $369 million in the quarter, a sharp increase from $39 million in the 1998 period. After preferred dividend requirements, earnings were 27 cents a diluted share in the latest quarter compared with a 3-cent-a-share loss.
     Revenue rose 2 percent to $6.7 billion.
     Cash flow -- reported as earnings before interest, taxes and amortization, and what analysts say indicates the health at a debt-laden company -- rose 49 percent to $1.6 billion.
     Cash flow in the cable networks division, which includes CNN and HBO, rose 21 percent, while its publishing division -- home to magazines Time and Sports Illustrated -- reported 15-percent growth.
     But cash flow fell 24 percent in the Warner Music Group, and the upstart WB Network tallied a wider loss.
     Time Warner Cable, which delivers cable programming to about 13 million subscribers, reported cash flow that more than doubled to $894 million, including the $477 million gain.
     Shares of Time Warner (TWX) fell 5/16 to 63 in Wednesday morning trading. Back to top

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