ABC Entertainment Chief to Run TV Network : Promotion: Robert A. Iger managed to run a profitable division despite the recession.

Robert A. Iger, the tough financial manager who ran the only profitable network during a recession-plagued tenure as ABC’s entertainment chief, has been promoted to president of the ABC Television Network Group.

He succeeds John B. Sias, who is retiring.

In naming Iger, 41, Capital Cities/ABC Inc. Chief Executive Daniel B. Burke moved him ahead of more senior executives. The promotion, however, was not a total surprise: Iger had been expected to move up the CapCities/ABC corporate ladder.

“My goal had always been to remain with this company beyond this position,” Iger said.

Iger said he expects to name his successor before he takes his new position Jan. 1.

Speculation centers on his two longtime deputies, Stuart Bloomberg and Ted Harbart. Bloomberg oversees program development and Harbart oversees scheduling.

Observers said it would be unusual for CapCities/ABC to reach outside the company for a replacement.

As president of ABC’s Network group, Iger will be in charge of the high-profile entertainment, news and sports divisions. Iger takes the job at a pivotal time, just as CapCities/ABC is re-evaluating its financial commitment to those areas.

Burke said he originally was reluctant to promote Iger because of concerns that the move would disrupt the network’s program development for next season, which is now underway.

“But on balance I thought it was the time to act, especially considering the other personnel decisions we have to make,” he said. Burke, 63, has stated he will step down at 65.

An outsider to the close-knit Hollywood TV program community, the plain-spoken Iger came to ABC nearly four years ago with a mandate to bring down the costs of developing and producing series and specials for the ABC TV network.

Although the task of controlling program costs proved more elusive than originally thought, Iger managed to solidify ABC’s prime-time ratings, especially among the 18- to 49-year-old viewers advertisers covet. ABC is also expected to win the crucial November ratings “sweeps” for the first time since 1981, thanks to its miniseries “The Jacksons.”

At a Monday press conference, Iger answered one programming question. He said ABC is not negotiating with late night talk show host David Letterman because it cannot offer him the 11:30 p.m. time slot he desires. ABC is committed indefinitely to “Nightline,” Iger said.

Iger’s tenure has been marked both by risk-taking--exemplified by the critically acclaimed but ultimately doomed “Twin Peaks”--and more conventional fare, including commercially successful Friday night shows such as “Family Matters” and “Step by Step.” By far ABC’s most successful new series in recent years has been “Home Improvement,” now one of the top-ranked series on TV.

However, Iger’s time at ABC’s Century City programming department also paralleled a severe downturn in network profitability tied to the ongoing recession.

The network’s operating profit fell to $120 million last year from $245 million in 1990. Analysts estimate that the network’s profit will drop again this year.

As chief prime-time programmer, Iger oversaw about $2 billion in expenditures--by far the largest cost component of the overall network.

When CBS zoomed from third to first place in the ratings race last season, Iger’s defense was that the economics of network TV had changed and it was now more important to be the more profitable network than the No. 1 network.