Business Week 13

Glass half full?

On the plus side, cable giant Tele-Communications Inc. noted improved operating cash flow and subscribership growth. But in detailing its annual financial results for investors, TCI also showed an annual net loss of $626 million for 1997, compared with year-prior net income of $257 million. Total revenue also dipped while interest expenses climbed. Still, Merrill Lynch & Co. analyst Jessica Reif Cohen cited "strong" revenue gains at TCI's cable system operations when viewed alone, and she added that the cabler employed "really good cost controls" during the year.



Profit plummets

TCI unit Liberty Media Group saw its annual net income sink to $124.6 million, or 34 cents per share, from a nearly ninefold higher year-prior figure of $1.06 billion, or $2.82. The reason? TCI transferred Encore and Starz! movie channels to Liberty in July, during a year in which those operations saw substantial escalations in programming and marketing costs. 1997 also featured the first yearlong absence of cash cow Home Shopping Network from Liberty's consolidated financial results. The electronic retailer is now part of USA Networks Inc. Liberty, primarily an investment vehicle for TCI's cable programming holdings, saw its revenue drop 69% last year to $374.2 million.



Back in black

German cable and satellite TV group ProSieben Media AG rode a return to profitability at its Kabel 1 channel to a 43% jump in annual pretax profit to DM254 million ($139.5 million). Kabel 1 saw a profit of DM9 million ($4.9 million) after a loss of DM21 million in 1996. ProSieben, which also operates a ProSieben channel, enjoyed a 10% revenue rise to DM1.86 billion ($1.02 billion).



Clips

U.K. pay TV programmer Flextech Plc. posted an annual pretax profit of £751,000 ($1.25 million) before a one-time charge of £7 million, compared with a 1996 loss of £16.8 million, as its revenue climbed 54% to £100.6 million ($167.9 million). ... New Jersey-based Clearview Cinema Group Inc. posted a broadened annual loss of $1.3 million, or $1.03 per share, compared with red ink of $218,328, or 29 cents, as operating cash flow rose 171% to $2.7 million in 1997 and revenue climbed 111% to $17.3 million.

-- Carl DiOrio