USA Networks Posts Narrower than Expected Q2 Loss

26 July 2001

Media group USA Networks yesterday posted a smaller Q2 loss than expected, with two-figure rises in earnings and revenues.

Buoyed by strong performances at its home shopping and cable TV operations, USA Networks – run by Barry Diller – lost 2 cents per share in the second quarter, much better than the 14 cents expected by analysts. Revenues jumped 21% year-on-year to $1.37 billion, while operating EBITDA (earnings before interest, taxes, depreciation and amortization) increased 28% to $249 million.

Diller maintained that the immediate outlook for advertising – which makes up 15% of USA’s revenues – remains gloomy. “We do not have a robust advertising market, and we will not for the near future,” he commented. “It will come back, so the question is what we will make of it when it does.”

News source: Financial Times