Time Warner Inc. exceeded analysts' expectations by
reporting a profit of 10 cents per share for the first quarter ended March 31, fueled
mainly by gains in its movie-production and cable-network divisions.
On the telephony front, the company said it plans to
resurrect an initial public offering for Time Warner Telecom, and its joint venture with
AT&T Corp. may take longer than expected to close.
Although both companies still plan to close the deal April
30, an AT&T spokeswoman said a later closing is a possibility.
"We have the 30th as our objective [for the
closing]," AT&T spokeswoman Pat Stortz said. "In our view, there are no
issues preventing an agreement, whether by April 30 or a bit later."
Time Warner beat analysts' predictions of a loss of 4
cents per share for the period, reporting net income of $138 million. In the same period
last year, Time Warner had a loss of $144 million, or 12 cents per share, including
preferred-dividend requirements of $82 million.
Cash flow -- which Time Warner defines as operating income
before amortization of intangible assets -- for its Turner Broadcasting System Inc. cable
networks was $184 million in the quarter, up 20 percent, on revenue of $838 million. Time
Warner attributed the increase to double-digit increases in subscriptions and advertising
Cash flow at the combined cable operations for the company
and Time Warner Entertainment -- the partnership between Time Warner and MediaOne Group
Inc. -- increased by 6 percent to $403 million, on revenue of $1.07 billion.
Cable-network cash flow at the group increased nearly 15
percent to $125 million.
Time Warner officials also discussed a new Internet
strategy of focusing its online offerings into five distinct "hubs," featuring
content from other company divisions relating to entertainment, sports, business,
lifestyles and news.