Lower Taxes Push Earnings Higher at Cap Cities-ABC
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Capital Cities-ABC Inc. said Thursday that its third-quarter earnings more than doubled from a year ago, but said the improvement was due principally to a lower tax bite and a one-time charge in the 1986 period.
The communications giant said its net income rose to $38.4 million in the three months ended Sept. 27, compared to $18.4 million a year earlier.
Revenue slipped 1% to $946.2 million in the latest three-month period from $959 million a year earlier.
The 1986 results included a special charge of $14.3 million resulting from a legal settlement.
The company, which is based in New York, said revenue from broadcasting operations fell 3%, while revenue from publishing operations rose 2% in the latest quarter.
The company said revenue from its ABC television network declined as a result of daytime preemptions for coverage of news events, disappointing ratings and a comparison with a period a year ago that included the Liberty Weekend broadcast.
It said the revenue decline was partially offset, however, by gains at the ESPN cable network, in which it owns a stake, and by local advertising strength for several of its major market television stations.
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