Times Mirror Co. Reports Second-Quarter Gains

Times Mirror Co., reflecting sharply higher results in its cable television division and a one-time gain from the sale of marketable securities, reported Thursday that second-quarter net income and income from continuing operations improved slightly over the comparable period a year ago.

The information and media company, which publishes The Los Angeles Times, said income from continuing operations increased in the second quarter by 6.3%, and net income increased 8.4% on slightly higher revenue of $903 million.

Despite the improved results, Times Mirror Chief Executive Robert F. Erburu cautioned about the outlook for the remainder of the year, especially in Los Angeles, where a regional recession has caused advertising revenue at The Times to slip 8% over the last six months. Income from continuing operations at Times Mirror in the second quarter was $40.3 million, or 31 cents per share, including 2 cents from the sale of marketable securities, compared to $38 million, or 29 cents per share, in the prior year. Net income for the quarter was $47.9 million, or 37 cents per share, up from $44.1 million, or 34 cents per share the previous year.

Net income for the first half was $77.65 million, or 60 cents per share, contrasted with a loss of $45.65 million, or 36 cents per share, a year earlier. Revenue for the six months rose to $1.771 billion from $1.726 billion.

During the quarter, newspaper publishing revenue remained flat at $499 million. The results reflect a decline at The Times, offset in part by higher revenue at Times Mirror’s eastern newspapers and a change to a dealer distribution system at Newsday. Operating profit declined 16.7% after excluding charges associated with an employee buyout program at Newsday in the year-ago period.

Cable TV revenue grew 9% to $118 million, and operating profit jumped 26% to $28.1 million. The company said the revenue gains, due to higher subscription levels, may be offset in the future by cable TV re-regulation, which takes effect in September.

The book and magazine publishing division reported a 3.4% increase in revenue to $285 million and a 9.6% decline in operating profit to $36.9 million. Times Mirror on Thursday closed down 37.5 cents at $30.25 per share on the New York Stock Exchange.