You will be redirected back to your article in seconds

MediaOne swings profit

Asset selloff boosts cash flow, revs

NEW YORK — Cabler MediaOne Group, now in the process of merging with AT&T Corp., said Tuesday it swung to a profit of $106 million in the latest third quarter from a $197 million loss a year ago — due mainly to a net gain of $581 million on sales of investments.

Operating cash flow rose 14% to $220 million and revenue rose 8% to $675 million.

The company’s 25.5% stake in Time Warner Entertainment, its cable and entertainment partnership with Time Warner Inc., produced pro-forma earnings for the period of $232 million — up 10% from the year before. Its TWE revenue rose 9% to $886 million.

That arrangement is likely to be unraveled at some point in the not-too-distant future since Time Warner wants control of entertainment assets that include Warner Bros. and HBO, and MediaOne badly wants to close its deal with AT&T. MediaOne has already surrendered its management rights over the venture to Time Warner in connection with the AT&T merger.

Merger moves on

MediaOne CEO Chuck Lillis said he’s pleased with the merger preparations. His shareholders have approved the deal and the FCC has somewhat loosened restrictions on cable ownership, which will make it easier for the controversial combination to pass regulators.

MediaOne Intl. has sold off interests in 11 companies for about $11 billion. They include a stake in U.K. wireless operator One 2 One, Telewest and wireless interests in central Europe and Russia.

The company had nearly 8.5 million cable subscribers as of Sept. 30. It said it has added 73,000 video, telephony and high-speed data subscribers since the end of June on upgraded systems and has 42,000 telephone and 173,000 high-speed data customers.

More Biz

  • Capitol Music Group Names Amber Grimes

    Capitol Music Group Names Amber Grimes Senior VP of Global Creative

    Amber Grimes has been named to the newly-created position of Senior Vice President of Global Creative for Capitol Music Group, it was announced today by Chairman & CEO Steve Barnett, to whom Grimes will report. According to the announcement, in her new position, Grimes will be integrally involved in formulating and executing the company’s global [...]

  • Kevin Hart

    Why Kevin Hart's Mea Culpa Was Too Little, Too Late (Opinion)

    Forgive me if this sounds trite or preachy, but the importance of owning up to our mistakes cannot be overstated. Denials, silence, cover-ups, repudiation — all are unacceptable. Media outlets around the globe, including ours, wrote about how Kevin Hart initially took no responsibility for having posted disgusting homophobic tweets years ago that resurfaced when [...]

  • Annie Lennox, Chrissie Hynde, Industry Execs

    Annie Lennox, Chrissie Hynde, Industry Execs Sign Anti-Brexit Letter

    Annie Lennox, Chrissie Hynde, Pink Floyd’s Nick Mason, Paloma Faith, Ed Sheeran manager Stuart Camp and Grammy/Emmy award-winning film composer David Arnold and several leading UK music industry bodies are among the signees of a letter drafted by the new organization Music4EU, stating that Brexit “represents a significant threat to the UK’s music industry” and [...]

  • Kevin Hart Oscars Gay Tweet Controversy

    What Public Figures Should Learn From the Kevin Hart Oscars Debacle (Guest Column)

    When social media erupted over Kevin Hart’s anti-gay tweets from years ago, many in the media and the entertainment industry believed he would immediately apologize, LGBTQ people would critique but ultimately accept his mea culpa, and the comedian would go on to host the Academy Awards. If offenders make a commitment to do better, their [...]

  • Bob Bakish Variety Cover Story

    Inside Bob Bakish's Aggressive Turnaround Plan for Viacom

    Bob Bakish was days into his job as CEO of Viacom in late 2016 when he began convening meetings with senior executives to execute a triage effort to save the once-mighty media giant. Paramount Pictures had just posted a $445 million annual loss. Viacom’s cable networks were in danger of being dropped by major distributors [...]

  • Craig Hunegs WB

    Craig Hunegs to Exit Warner Bros. TV Group and Digital Networks (EXCLUSIVE)

    After nearly 25 years in the Warner Bros. family, Craig Hunegs is exiting his post as head of business for Warner Bros. TV Group and president of the studio’s digital networks wing. Hunegs said he has been discussing his exit with Warner Bros. chairman-CEO Kevin Tsujihara for the past several months. At a time of [...]

More From Our Brands

Access exclusive content