EARNINGS : Some Media Giants Break Mold With Quarterly Gains

Several media giants reported improved earnings Monday, overcoming a sluggish economy that has weighed heavily on the industry.

Time Warner Inc., the world’s largest media company, said it earned $6 million in the third quarter but lost money on a per-share basis, in part because of its heavy debt burden.

The company said its earnings amounted to a 41-cent-per-share loss after payment of preferred dividends and a stock split that raised the number of common shares outstanding to 371 million from 318 million.

A year ago, Time Warner lost $62 million, or 66 cents a share, after a one-time charge for a publishing division restructuring.

The New York company earned $611 million in the latest period before interest, taxes, depreciation and amortization, compared to $505 million a year ago. Revenue climbed to $3.2 billion from $2.9 billion.

“We are very pleased that despite continued sluggishness in the worldwide economy, Time Warner has now posted three straight quarters in which all five of our divisions showed increases in their results,” said President and Co-Chief Executive Gerald Levin.

“This also represents the fourth consecutive quarter in which the company has posted net income,” he added.

Time Warner stock rose 87.5 cents to $23.625 a share on the New York Stock Exchange after the announcement.

Capital Cities/ABC Inc. said its third-quarter profit rose 15% despite an operating loss at its ABC television network.

Cap Cities said its income rose to $62.2 million, or $3.74 a share, from $54 million, or $3.21 per share, a year ago. Revenue edged up to $1.22 billion from $1.21 billion.

The company said its operating income was off 5% at $116.5 million, with an 8% decline in broadcasting operations. The ABC television network reported a small loss after a small profit in the third quarter of 1991.

The company’s stock fell $1.125 to $428.75 on the NYSE.

TV station and video income jumped while radio earnings fell, the New York-based company said. Publishing earnings rose 14%, reflecting gains in newspapers and specialist publications.

McGraw-Hill Inc. said its earnings rose 11% to $61.1 million in the quarter.

The New York-based firm said its $61.1-million third-quarter earnings translated to $1.25 a share, and compared to earnings of $55.1 million, or $1.13 a share, a year ago.

Revenue rose to $532.7 million from $489.5 million.

“Another outstanding quarter at Standard & Poor’s, substantial improvement in legal, college and international publishing operations, and a healthy increase in television advertising were major factors in producing these results,” Chairman Joseph Dionne said.

The company publishes BusinessWeek magazine, trade magazines and newsletters and has book, broadcasting and financial-services businesses.