Time Warner Businesses Report Record Third Quarter

Business Wire, Oct 14, 1998

NEW YORK--(BUSINESS WIRE)--Oct. 14, 1998--

-- Combined EBITA Growth 18%

-- Time Inc., Turner Cable Networks, Warner Bros., HBO and

Time Warner Cable All Post Record Quarters

-- Net Income Improves to $39 Million

Time Warner Inc. (Time Warner) and Time Warner Entertainment Company, L.P. (TWE), reported record combined operating income before amortization of intangible assets (EBITA) of $1.082 billion, up 18%, on revenues of $6.800 billion, up 12%, for the third quarter of 1998. This compares to EBITA of $920 million on revenues of $6.088 billion for the same period in 1997. In the quarter, Time Inc., Turner Cable Networks, Warner Bros., HBO and Time Warner Cable all posted records.

For the first nine months of 1998, Time Warner and Time Warner Entertainment reported record combined EBITA of $3.094 billion, up 13%, on revenues of $19.374 billion, up 10%, versus $2.742 billion of EBITA, on revenues of $17.648 billion for the same period a year ago. Time Inc., Turner Cable Networks, Warner Bros., HBO and Time Warner Cable posted recohe third quarter and nine months (in millions):

$ 112 $ 98 $ 373 $ 331 Music 99

90 288 314 Cable Networks--TBS 154 128

505 407 Filmed Entertainment--TBS 71 68 94

103 Cable 81 107 229 316 Intersegment Elimination (1) (4) (21) (11)

Time Warner EBITA $ 516 $ 487 $ 1,468 $ 1,460

ENTERTAINMENT GROUP Filmed Entertainment

--Warner Bros 162 106 403 321 Broadcasting

--The WB Network (17) (21) (78) (60) Cable Networks--HBO 117 102 339 291 Cable

336 257 1,017 759

Entertainment Group EBITA $ 598 $ 444 $ 1,681 $ 1,311

Intercompany Elimination (32) (11) (55) (29)

Combined EBITA $ 1,082 $ 920 $ 3,094 $ 2,742