TCI posts big gains in 3rd qtr.

Tele-Communications Inc., the nation’s largest cablecaster, is reaping the benefits of a rate increase, rising subscribers and a big boost in advertising in the third quarter with a tremendous surge in cash flow.

As a result of the gains, TCI posted a $ 30 million (6 cents a share) net profit for the third quarter ended Sept. 30.

By comparison, the Denver-based company posted a $ 26 million (7 cents) net loss for the same period last year.

Cash flow, which is income after costs and expenses but before depreciation and interest expenses, increased 18% to $ 421 million. This gives TCI nearly three times the cash needed to cover its net interest expenses.

Revenues were up 11.6% over the comparable quarter to $ 896 million.

The results, said Jessica Reif, an analyst with Oppenheimer & Co. were “way above expectations.”

This is the second positive quarter for TCI, which has seen earnings drained to pay interest on high-cost debt.

Analyst Fred Moran of Donaldson, Lufkin & Jenrette figures that next year’s cash flow won’t increase as fast, but he does expect 8% to 9% revenue growth, 5% to 6% expense growth and an 11% to 12% gain in cash flow. He estimates earnings to be 75 cents to 80 cents a share for 1993.

Meanwhile, Comcast posted a $ 52.3 million (39 cents) net loss for the same quarter, compared to a $ 40.3 million (34 cents) net loss for the third quarter of 1991.

Revenues were up 24% to $ 221.2 million vs. $ 178.9 million in the comparable quarter. It reported a 28% increase in operating cash flow to $ 98.5 million for the period.

Want to read more articles like this one? SUBSCRIBE TO VARIETY TODAY.
Post A Comment 0

Leave a Reply

No Comments

Comments are moderated. They may be edited for clarity and reprinting in whole or in part in Variety publications.

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

More Biz News from Variety