P.M. BRIEFING : Time Warner Units Post Profit, but Acquisition Generates Loss
Time Warner Inc. said today that five of its six operating units posted record-high income in the first quarter but that the costs of buying Warner Communications Inc. created a loss.
The company said it lost $51 million, or $3.25 per share, in the first quarter of 1990 compared to a loss of $81 million, or $3.83 per share, in the same period a year ago, assuming that the acquisition of Warner had been completed by then.
Revenues rose to $2.74 billion from $2.55 billion in the first quarter of last year.
Time Warner, the world’s largest media company, holds $10.6 billion in debt from its acquisition of Warner in January and will have payments of $1.2 billion to service its debt this year.
Time Warner includes Warner Bros. studio; Time, Life, Sports Illustrated and People magazines; Time-Life Books; the nation’s second-largest cable television system; HBO cable TV programming, and its recorded music division.
Time said that each of its divisions, except for magazines, posted record operating results in the first quarter.
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