Disney, Time Warner Results as Expected

Walt Disney Co. earnings fell 31% in the quarter ended June 30, while Time Warner Inc. trimmed its losses during the same period. The results, announced Thursday, were generally in line with expectations.

Disney earned $165.5 million, or $1.24 a share, in its fiscal third quarter on revenue of $1.51 billion, down 2% from the previous year’s quarter. The company blamed the decline on “continued lower levels of domestic and international travel, the current recession and less than expected box-office performance.”

At Disney’s theme parks and resorts, its largest business segment, revenue was off 12% from the comparable 1990 quarter and pretax operating income fell 39%. Revenue for the filmed entertainment segment was up 7%, with operating income up 8%; revenue for the consumer products segment jumped 24%, but operating income rose only 1%.

For the first three quarters of fiscal 1991, Disney reported that it earned $462.6 million, or $3.48 per share, down 22% from the previous year. Revenue totaled $4.44 billion, up 8%.

Time Warner said it lost $32 million in the quarter ended June 30, compared to a $51-million loss in last year’s second quarter. After allowing for preferred dividend payments, the latest loss equals $3.10 per common share. Revenue totaled $2.85 billion, up 10.3% from the previous year’s period.

The company has reported losses since it was formed by Time Inc.’s purchase of Warner Communications in 1989, primarily because of heavy interest and amortization expenses related to that acquisition.

Nonetheless, operating earnings--before interest, taxes, depreciation and amortization charges--hit record levels at three divisions: filmed entertainment, up 13%; HBO, up 11%, and cable TV systems, up 17%.

Operating results fell 22% at the book and magazine publishing division, mainly because of the soft advertising market, while operating earnings at the music division were off 7%, reflecting start-up costs of new record labels.

For the first six months of the year, Time Warner reported a loss of $82 million, compared to $102 million in the first half of 1990. Revenue totaled $5.69 billion, up 7%.