Go.com Posts Narrower-Than-Expected Loss - TheStreet

Go.com Posts Narrower-Than-Expected Loss

But Disney execs warned that Go.com's second-quarter results would be soft by comparison.
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Internet portal, posted a fiscal first-quarter loss that was narrower than analysts' projections, but Disney warned that Go.com's second-quarter results would be soft by comparison.

Perhaps equally of note is that

Michael Eisner

, chairman of Disney, told analysts on the Go.com conference call that Disney did not need to form a partnership with a Web company to be well positioned to compete with the

combined company created by

America Online's


takeover of

Time Warner


. "We don't have to pattern ourselves after an AOL Time Warner," he said. "We have the assets to go our own way."

Eisner did not rule out an acquisition, however. "If there are acquisitions out there that make sense, we are not skittish," he said "We can stand up and play ball with the biggest guys around."

Go.com, which

said last month that it would remake itself into an entertainment and leisure destination, posted losses of 30 cents a diluted share, or $82.6 million, in its first quarter of operation. Analysts surveyed by

First Call/Thomson Financial

had projected a loss of 47 cents a share. Go.com's better-than-expected performance was driven by Web revenue of $72.8 million, a 47% increase over year-earlier figures. "However, the seasonal nature of the business and the impact of integrating


which Disney acquired last year and Go.com operations may result in softer ... revenue comparisons in the second quarter," the company said.

Steve Bornstein, chairman of Go.com, said he expected the first iteration of the new Go.com site to roll out in early spring.

In January, Burbank, Calif.-based Disney

announced earnings of 25 cents a share for its first quarter, beating Wall Street's consensus by 5 cents a share, but that number excluded Go.com results. Disney said Wednesday that, including Go.com, it earned 16 cents a share for the quarter.

Disney has a retained interest of 72% in Go.com, which Disney spun out as a tracking stock in November.

Shares of Go.com fell 1, or 3.5%, to 28 in regular trading. They did not trade after hours. Disney's shares rose 1/8 to 37 11/16 in regular trading and traded up to 38 9/16 after hours, according to