said Monday it is reducing expectations for 2000 growth to reflect the poor box office performance of "Little Nicky," softness in cable advertising revenue and weaker-than-anticipated music sales.
, which will soon merge with Time Warner, expects to post fourth-quarter advertising and e-commerce revenue in line with Wall Street consensus expectations, the company said.
Time Warner said it expects growth in earnings before interest, taxes and depreciation, or
EBITDA, for full-year 2000 to be 11% rather than the 12% to 13% seen previously. The company says it is comfortable with expectations for annual growth in advertising revenue in the mid-teens and says it expects to "healthy" double-digit EBITDA growth in other core businesses, including publishing and cable systems.
The New York-based media giant also announced that it is restructuring its ownership of the Road Runner broadband Internet service, which will result in a charge of $20 million to $40 million in the fourth quarter.
Time Warner says the combined 20% preferred interest held by
will be redeemed and that Road Runner will distribute substantially all its assets to Time Warner and to
. Time Warner and its affiliates will incur $570 million in cash expenditures related to the restructuring.