‘Twister,’ Higher Cable Fees Help Trim Time Warner Loss

Time Warner Inc. said Wednesday that it narrowed its loss by 37% in the third quarter, helped by box-office success for “Twister” and higher cable television fees.

The huge New York-based media-entertainment concern--which just got bigger last week when its merger with Turner Broadcasting System Inc. was completed--lost $91 million, or 43 cents per share, in the quarter ended Sept. 30.

A year earlier, the company lost $144 million, or 41 cents. This year’s loss per common share increased because the company paid higher preferred dividends.

The results did not include the Turner purchase.

Time Warner’s filmed entertainment business also credited “Eraser” and “A Time to Kill” for the gain. Profit from its cable television system rose 14%. The music division alsosaw sharp gains compared with last year’s figure, which was driven down by a one-time cost to restructure or close some of its operations.

The company said its cash flow, which doesn’t include interest costs and depreciation of its cable operations, was $964 million, up 32% from $729 million a year earlier.

Time Warner and other debt-laden media companies encourage analysts and investors to follow this measurement as an indication of how the business is performing.

On that basis, Time Warner’s music operations earned $143 million, up from $57 million. Cable profit rose to $512 million from $390 million and filmed entertainment profit rose to $146 million from $129 million. Profit from publishing, which includes Time magazine, rose 15% to $99 million.

For the first nine months of the year, Time Warner lost $180 million, up from $24 million. The loss per share, after preferred dividends were paid, was $1.11, up from 58 cents.

Time Warner stock rose $1 to close at $41.875 on the New York Stock Exchange.