Q4, Full-Year Revenue Gains at Time Warner

NEW YORK, February 6: For
2007, Time Warner delivered revenues of $46.5 billion, a 6-percent gain on the
year-ago period, while the fourth quarter saw revenues rise 2 percent to $12.6
billion.

Announcing the results,
CEO Jeff Bewkes noted: “I’m pleased that our company met or
exceeded all of our financial objectives last year. Looking ahead, we've
identified key initiatives that will enable us to deliver strong business
results long into the future while increasing our returns to our shareholders.
Specifically, we’ll intensify our creative and entrepreneurial focus to move
our businesses ahead more quickly. We’ll aggressively control costs to help
fund our investments in future growth. We’ll make sure that Time Warner has the
right businesses in the right structure. And we’ll actively manage our balance
sheet to deploy capital to the best advantage of our shareholders. In change
lies opportunity, and I have great confidence in our future.”

The full-year results
reflected gains at the cable, filmed entertainment and networks segments.
Adjusted Operating Income before Depreciation and Amortization climbed to $12.9
billion, up 17 percent, driven by a 36-percent increase at Time Warner Cable
and gains at each of the company’s other segments. Operating income rose 23
percent to $8.9 billion.

Time Warner Cable’s
revenues for 2007 were up 36 percent to $16 billion, with an improved operating
income of $2.8 billion. Filmed entertainment revenues were up to $11.7 billion,
delivering an operating income of $845 million. Revenues from the networks were
stable at $10.3 billion, with an operating income of $3 billion. AOL’s revenues
were down from $7.8 billion to $5.2 billion, but the segment showed an improved
operating income of $2 billion.

The fourth-quarter gains
were driven by the cable and filmed entertainment segments. Adjusted Operating
Income before Depreciation and Amortization climbed 16 percent to $3.5 billion,
and operating income grew 12 percent to $2.3 billion.

In the quarter, the cable
segment was the biggest contributor to total revenues, bringing in $4.1
billion, a 12-percent gain, with an operating income of $795 million. Filmed
entertainment revenues saw a 13-percent rise to $3.5 billion, while operating
income rose from $155 million to $253 million. Network revenues remained flat
at $2.7 billion, but operating income fell slightly to $770 million. And AOL’s
revenues fell to $1.3 billion, and operating income plummeted from $910 million
to $274 million.

—By Mansha Daswani