In NEW YORK story headlined "Liberty's Starz and Discovery numbers rise" please read in paragraph 1 "controlled by cable mogul John Malone" (clarifies role)
A corrected repetition follows.
(Recasts, adds details)
By Sinead Carew
NEW YORK, March 25 (Reuters) - Liberty Media , which is controlled by cable mogul John Malone, said on Tuesday fourth-quarter cash flow rose at subsidiary Starz Encore and also at Discovery Communications which benefited from higher ad bookings.
Media conglomerate Liberty, which owns 50 percent of Discovery, said the current quarter also looks good for the Discovery television network.
"We're continuing to see the positive trend in the fourth quarter carrying into the first quarter this year," President and Chief Executive Robert Bennett told analysts during a conference call.
Bennett said Liberty, which owns 18 percent of News Corp. , continues to view Rupert Murdoch's business as a strategic investment despite the fact that both companies could make separate bids for Hughes Electronics .
Liberty has made no secret of its interest in potential transactions including Hughes, which automaker General Motors has put on the block, or the U.S. assets of Vivendi and home retail network QVC.
Bennett said that at the right price Liberty still sees QVC, a venture with Comcast Corp , as an attractive acquisition prospect. Liberty owns 42 percent of QVC but said this month it would cut ties with Comcast.
QVC could be used "as a source of cash flow that allows us to do other things and to continue to grow our business and reinvest in new businesses without having to sell others," Bennett said.
Liberty is in discussions with Comcast, which has the right of first refusal to buy the entire company.
DISPUTE DIMS STARZ SALES
Liberty said movie channel operator Starz Encore's fourth-quarter operating cash flow rose to $102 million from $76 million last year. Starz Encore's fourth-quarter revenue rose to $228 million from $224 million last year.
Liberty said last week that Starz Encore fourth-quarter and 2003 revenue would be cut due to a dispute with Comcast Corp. over how much the cable operator should pay for broadcasting rights.
It said on Tuesday it expects Starz Encore's 2003 revenue to rise in the low single digits at best and that its operating cash flow would remain the same as last year.
"The guidance is disappointing for Starz Encore but generally in line with what was expected from the Comcast dispute," Guzman & Co. analyst David Joyce said.
DISCOVERY TO IMPROVE
In contrast Liberty estimated that revenue at Discovery Communications would increase in the low teens and that its cash flow would rise between 15 percent and 20 percent in 2003.
Discovery posted operating cash flow of $142 million compared with $100 million last year on revenue that rose to $546 million from $454 million last year, Liberty said.
Guzman's Joyce said he had expected Discovery to report $500 million revenue and $115 million cash flow in the fourth quarter.
Liberty shares fell slightly to $10.01 after the market closed after finishing up 29 cents, or 3 percent, at $10.09 in regular New York Stock Exchange trading.