Warner Communications, enjoying gains in its already robust film and music business, reported an 81% increase in its second-quarter earnings and a 64% improvement in net income for the first six months of the year.
The New York-based company reported net income of $51.6 million on revenue of $644.3 million for the three months ended June 30. For the six months, Warner reported net income of $82 million on revenue of $1.3 billion.
The results include an after-tax gain of about $26.3 million in 1986 and $8.2 million in 1985 from the sale of 1.2 million shares of Hasbro stock each year. Without the Hasbro stock sales, Warner Vice President Geoffrey W. Holmes said, Warner's second-quarter net income would have been $26.1 million, compared to $20 million last year.
The filmed entertainment unit reported operating income of $42 million, compared to $36.2 million a year earlier. The recorded music and music publishing subsidiary reported operating income of $34.8 million, up from $24.2 million.
Second-quarter interest expense climbed to $25.9 million, compared to $18.4 million a year ago. Holmes said the increase occurred because Warner has assumed the debt of the former Warner Amex Cable Communications company after purchasing American Express' 50% interest last February.