Warner’s Net Drops but Its Operating Income Rises

Warner Communications Inc., the entertainment concern that only two years ago was in the red, reported that operating net profit improved 48% in 1986 to $137.4 million.

The New York-based company posted lower earnings for both the fourth quarter and the full year. But the company pointed out that the 1985 figures included sizable gains on the sale of investments.

Warner’s profit from continuing operations was $39.9 million in the most recent quarter, compared to $16.9 million a year earlier.

For its latest quarter, Warner Communications netted $62 million on revenue of $822 million. That compares to $111.2 million on revenue of $644 million a year earlier, when Warner had an after-tax gain of $94.3 million on the sale of investments.

For the full year, Warner earned $185.8 million on revenue of $2.85 billion, compared to 1985, when it netted $195.3 million on sales of $2.23 billion.