Printer Friendly

Time Warner Businesses Report Record First-Quarter EBITDA Cable Posts Record Quarter -- First Time in 18 Months -- Core Content Businesses Publishing, Music, Filmed Entertainment and HBO -- Post Combined 13% EBITDA Growth in the Quarter.

NEW YORK--(BUSINESS WIRE)--April 17, 1995--Time Warner Inc. (Time Warner) and Time Warner Entertainment Company, L.P. (TWE), reported record combined earnings before interest, taxes, depreciation and amortization (EBITDA) of $681 million on revenues of $3.890 billion for the first quarter of 1995, compared to EBITDA of $639 million on revenues of $3.485 billion for the same period in 1994. The five core businesses (publishing, music, filmed entertainment, HBO and cable) had combined EBITDA growth of 10% with all posting record post-merger results for the first quarter. Including the start-up losses associated with The WB Network, EBITDA growth was 7%. In addition, Time Warner's four core content businesses publishing, music, filmed entertainment, and HBO grew a combined 13% for the quarter. Below are EBITDA and revenues for the first quarter (in millions): -0-

 First Quarter
 1995 1994
TIME WARNER
 Publishing $ 77 $ 70
 Music 173 147
ENTERTAINMENT GROUP
 Filmed Entertainment 125 117
 BroadcastingDThe WB Network (21) D
 ProgrammingDHBO 71 61
 Cable 256 244


Combined EBITDA $ 681 $ 639


Combined Revenues $3,890 $3,485


 Commenting on the company's first-quarter performance, Chairman
and CEO Gerald M. Levin, said: "I am pleased that for the first time
as Time Warner all five of our core businesses have posted record
first-quarter results and that our cable division is again showing
strength in achieving its first record-breaking quarter in 18 months.
Our content businesses -- publishing, music, filmed entertainment,
and HBO -- continued their excellent performance with a combined 13%
EBITDA growth in the quarter. Looking forward, I expect the strong
results from our businesses to continue."
 Separately, Time Warner reported first-quarter EBITDA for its
wholly owned Publishing and Music Groups of $250 million, up 15% on
revenues of $1.817 billion, compared to $217 million of EBITDA on
revenues of $1.558 billion in the first quarter of 1994. Time Warner
also reported $22 million of pretax income from its equity in the
Entertainment Group in the first quarter, compared to $45 million for
the same period in 1994.
 For the quarter, Time Warner reported a net loss of $47 million,
compared to $51 million for the same period a year ago. The net loss
applicable to common shares was $50 million for the quarter, compared
to $54 million for the same period of 1994. Net loss per common
share was $.13, compared to $.14 in the first quarter of 1994.


PUBLISHING


 First quarter EBITDA for Time Inc., the company's publishing
division, was $77 million, up 10%, compared to $70 million for the
year-earlier period. The quarter's strong results were driven by
gains in magazine advertising and the overall performance of Sports
Illustrated, People, Time and Fortune, despite significant increases
in postage and paper costs. Also contributing to the quarter was the
company's book businesses, which in the quarter had 11 bestsellers.
Sports Illustrated was named Magazine of the Year by Advertising Age
magazine and two of Time Inc.'s magazines won National Magazine
Awards in the quarter. Entertainment Weekly won for general
excellence and Martha Stewart Living won for magazine design.


MUSIC


 Warner Music Group posted record first-quarter EBITDA of $173
million, up 18%, compared to $147 million in the first quarter of
1994. Contributing to the year's results were significant increases
in U.S. and internationally recorded music sales as well as revenue
gains from music publishing. Top worldwide selling artists include
Van Halen, Adina Howard, Green Day, Hootie and the Blowfish and
Mariya Takeuchi. In the quarter, the Warner Music Group continued to
improve its overall international market share while in the U.S., the
company continued its significant lead with a market share 50%
greater than its closest competitor.


ENTERTAINMENT GROUP FILMED ENTERTAINMENT


 First-quarter EBITDA from the company's Filmed Entertainment
division (including Six Flags) was a record $125 million versus $117
million for the comparable 1994 period. Contributing to Warner
Bros.' record quarter was the success at the domestic box office of
Just Cause, Disclosure and Outbreak. Internationally, theatrical
revenues were driven by the success of Interview With The Vampire,
Disclosure and The Specialist, all of which have exceeded $100
million at the international box office. Warner Bros. also
benefited from the continued strong performance of its worldwide home
video and television distribution operations. Warner Bros.
Television's "ER" and "Friends" are the top rated new shows on
network television for the 1994/1995 broadcast season.


BROADCASTING -- THE WB NETWORK


 The WB Network recorded a loss of $21 million in the quarter due
to planned start-up costs of its new national broadcast operations.
The WB, launched on Jan. 11, 1995, reaches 80% of U.S. households.
The Wednesday night lineup features four comedies: The Wayans Bros.,
The Parent Hood, Unhappily Ever-After and Muscle. In addition to its
primetime programming, in the fall of 1995 The WB will unveil a new
children's programming service, Kids' WB, which will feature six
half-hours on Saturday mornings and two half-hour morning series on
weekdays.


HBO


 The Programming HBO business had record first-quarter EBITDA of
$71 million, up 16%, compared to $61 million for the year-earlier
period. The quarter's results reflect a significant increase in
subscribers to both HBO and Cinemax, due primarily to continued
strong growth in cable as well as increases in direct broadcast
satellite (DBS) distribution. In March, HBO received a George Foster
Peabody Award for Barbra Streisand: The Concert.


CABLE


 Time Warner Cable's EBITDA was a first-quarter record $256
million, up 5% from $244 million in the year-earlier period.
Contributing to the quarter's results were increases in basic
subscribers as well as revenue gains from pay TV and advertising. In
a year-over-year comparison, Time Warner Cable subscribers grew at a
5% rate, the fastest growth rate in four years. On April 1, Time
Warner completed the formation of its joint venture with
Advance-Newhouse, thereby increasing the number of customers it
serves to over 9 million. Later this year with the closing of the
acquisitions of Summit Communications, KBLCOM and Cablevision
Industries, Time Warner Cable will manage 11.5 million subscribers,
giving Time Warner Cable 34 clusters with over 100,000 subscribers.
 Time Warner Inc. is the world's leading media and entertainment
company, with interests in magazine and book publishing, recorded
music and music publishing, filmed entertainment, broadcasting and
theme parks and cable television and cable television programming.
-0-Attachments: (1) Consolidated Income Statement (2) Notes


TIME WARNER INC.

CONSOLIDATED STATEMENT OF OPERATIONS

BY BUSINESS SEGMENT

(In millions, except per share amounts)

(Unaudited)

Three Months Ended

March 31,

1995 1994 Revenues: Publishing $ 831 $ 751 Music 991 812 Intersegment elimination (5) (5)

Total revenues $1,817 $1,558

Operating income before

depreciation and amortization: Publishing $ 77 $ 70 Music 173 147

250 217

Depreciation and amortization (112) (105)

Operating income 138 112

Equity in pretax income of Entertainment

Group, substantially all TWE 22 45 Interest and other, net (155) (158) Corporate expenses (20) (18)

Loss before income taxes (15) (19) Income taxes (32) (32)

Net loss (47) (51) Preferred dividend requirements (3) (3)

Net loss applicable to common shares $ (50) $ (54)

Net loss per common share $(0.13) $(0.14)

Average common shares 379.5 378.6 -0-

ENTERTAINMENT GROUP

COMBINED STATEMENT OF OPERATIONS

BY BUSINESS SEGMENT

(In millions; unaudited)

Three Months Ended

March 31,

1995 1994 Revenues: Filmed Entertainment $1,207 $1,083 Broadcasting - The WB Network 3 - Programming - HBO 390 362 Cable 578 551 Intersegment elimination (105) (69)

Total revenues $2,073 $1,927

Operating income before

depreciation and amortization: Filmed Entertainment $ 125 $ 117 Broadcasting - The WB Network (21) - Programming - HBO 71 61 Cable 256 244

431 422

Depreciation and amortization (230) (216)

Operating income 201 206

Interest and other, net (164) (146) Corporate services (15) (15)

Income before income taxes 22 45 Income taxes (11) (4)

Net income $ 11 $ 41

TIME WARNER INC. AND ENTERTAINMENT GROUP
NOTES TO STATEMENTS OF OPERATIONS


Note 1: Entertainment Group


 The Entertainment Group consists of the Filmed Entertainment,
Broadcasting-The WB Network, Programming-HBO and Cable businesses,
substantially all of which are owned by Time Warner Entertainment
Company, L.P. (TWE), a Delaware limited partnership in which
subsidiaries of Time Warner are the general partners and subsidiaries
of ITOCHU Corporation, Toshiba Corporation and U S WEST, Inc. are
the unaffiliated limited partners. The operating results of the
Entertainment Group are reported by Time Warner on a deconsolidated
basis. No portion of TWE's net income for the three months ended
March 31, 1995 and 1994 was allocated to the limited partners.
Within the Entertainment Group, the revenues and operating results of
Filmed Entertainment include the revenues and operating results of
Warner Bros. and Six Flags.


Note 2: Income Taxes


 The relationship between income before income taxes and income tax
expense of Time Warner is affected by the amortization of goodwill
and certain other financial statement expenses that are not
deductible for income tax purposes. Income tax expense of Time
Warner includes all income taxes related to its allocable share of
partnership income and its equity in the income tax expense of
corporate subsidiaries of the Entertainment Group.




CONTACT: Time Warner

Edward Adler

212/484-6630
COPYRIGHT 1995 Business Wire
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1995, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

 Reader Opinion

Title:

Comment:



 

Article Details
Printer friendly Cite/link Email Feedback
Publication:Business Wire
Date:Apr 17, 1995
Words:1504
Previous Article:TNC Media Inc. announces Texas acquisition.
Next Article:One Price Clothing Stores Inc. announces financial results.
Topics:


Related Articles
TIME WARNER BUSINESSES REPORT RECORD SECOND QUARTER; 15% EBITDA GROWTH; Time Warner Content Businesses Publishing, Music, Filmed Entertainment and...
VIACOM REPORTS HIGHER THIRD QUARTER EBITDA OF $710 MILLION ON INCREASED REVENUES OF $3.06 BILLION.
Viacom Posts Sharply Higher 1995 Operating Results, Reflecting Significant Contributions From All Business Segments.
Time Warner Businesses Report Record Third Quarter.
Viacom Reports First Quarter 1998 Results.
TIME WARNER EARNINGS STRONG.
HUGE GAINS AT TIME WARNER; PROFITS CLIMB ACROSS BOARD.
TIME SET TO REPORT PROFIT RISE.
PROFITS REBOUND AT TIME WARNER; FIRM'S FORTUNES BOUNCE BACK AFTER LENGTHY SLUMP, CRITICISM.
ACQUISITION COSTS FUEL TIME WARNER LOSSES.

Terms of use | Copyright © 2014 Farlex, Inc. | Feedback | For webmasters