USA Networks Loses $9.3 Million
NEW YORK (AP) _ USA Networks Inc., Barry Diller’s cable, movie and direct commerce company, reported higher cash flow in the second quarter but still had a net loss due to spending on Internet startup operations and investment in new programming.
USA Networks had a net loss of $9.3 million compared to $12.4 million in the same quarter a year ago. Revenues rose 13 percent to $804.5 million from $711.5 million.
But the company’s cash flow, a measure widely used by investors that excludes taxes, interest and amortization expenses, rose a hefty 25 percent to $176.1 million from $141.2 million.
The company has been investing heavily in its CitySearch service, a series of online guides for cities. USA expanded CitySearch with the acquisition announced last week of the Sidewalk online entertainment guide from Microsoft Corp.
USA has also been ramping up production for its cable networks, including new shows for its Sci-Fi channel’s Friday night lineup. USA also owns the Home Shopping Network, Ticketmaster, the Hotel Reservations Network and the Internet Shopping Network.
In April, Diller announced the acquisition of several boutique film studios from Seagram Co., October Films, Gramercy Pictures and the remains of Polygram Filmed Entertainment.
Shares of USA were down 50 cents to $44.50 on the Nasdaq Stock Market.