In remarks to shareholders at the company’s annual meeting in Fort Worth, Texas, Capital Cities/ABC Inc. president and chief executive Daniel B. Burke said the company has been racking up so-called investment spending losses with a string of new start-up businesses.
The broadcaster had pre-tax investment spending losses of $ 57 million in 1992, and Burke added that investment spending losses in 1993 would “increase by 20%.”
He cited the number of start-up operations launched in 1992 as factors behind the investment spending loss, and pointed to Capital Cities’ plans for global expansion as a reason for the increased spending in 1993. Burke noted that Capital Cities sees a “window of opportunity” for overseas expansion which is open “during this period of conversion from state-owned television to commercial.”
Burke went on to say that “our most important future opportunity lies in expanded television program production and ownership.” He pointed to ABC Prods. as the company’s most significant investment, and the launch of ESPN II toward the end of the year.
In addition, Burke said the company expects investment on start-up publishing businesses “to triple in 1993 and to impact earnings for the year.”