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Time Warner beats Street
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July 15, 1998: 3:17 p.m. ET
Media, entertainment giant posts $101M profit, explores phone options
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NEW YORK (CNNfn) - Time Warner Inc. reported second-quarter profit Wednesday of $101 million, handily beating Wall Street estimates that called for the media and entertainment giant to post a loss for the period.
Time Warner Chairman Gerald Levin also said the company is talking with AT&T Corp. about using its networks to begin offering local phone service.
Time Warner, which is the parent company of CNN and CNNfn, said its operating income before amortization of intangible assets amounted to 4 cents a share. First Call estimates had forecast a loss of 4 cents a share.
The company posted revenues of $3.7 billion for the second quarter.
In the year-ago quarter, Time Warner earned $30 million, for a loss of 9 cents a share after preferred requirements, on revenue of $3.2 billion.
The company said its Turner Cable Networks, Time Inc. and Warner Bros. units all posted records for the quarter, as well as for the first six months of 1998.
Levin said Time Warner is exploring a number of options that would allow it to compete with regional Bell operating companies in offering local phone service.
Some of the alternatives being considered include either leasing space on AT&T's networks or giving the phone giant an upfront payment in exchange for network access.
Joe Collins, who heads Time Warner's cable and telephone operations, said other phone companies besides AT&T could be involved. He also said Time Warner is considering a number of access options, including buying its own local phone network.
"There's lots of ways to make a deal," he said.
Time Warner (TWX) shares were up 4-7/16 to 95-11/16 in late afternoon trading.
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