Time Warner Reports Strong Q4, Full-Year Results

NEW YORK: Time Warner’s 2010 revenues gained 6 percent to $26.9 billion, while quarterly revenues rose 8 percent to $7.8 billion, delivering a net income of $769 million.

“Time Warner had an outstanding year in 2010," said Jeffrey Bewkes, chairman and CEO. "We posted our strongest revenue growth in years, grew adjusted operating income 17 percent and increased adjusted EPS by over 30 percent. At the same time, we made substantial progress in boosting the competitive position and long-term growth profiles of our businesses."

Bewkes continued, “In 2011, we’re even more confident about how we’re positioned, and we’ll be even more aggressive. We’ll increase our investments in programming, production and marketing even more than we did last year. We’ll keep pushing to accelerate new digital business models. We’ll keep expanding our presence in the most attractive international territories. And we’ll do all of this while keeping a rigorous focus on our operating and capital efficiency. Reflecting both our confidence and our commitment to improving shareholder returns, today we also announced an increase in our dividend and a $5 billion stock repurchase authorization.”

The full-year revenue hike of 6 percent to $26.9 billion was driven by the networks and filmed-entertainment segments, with net profit rising 4 percent to $2.6 billion. In Q4, networks and filmed entertainment were again the driving force behind the 8-percent revenue boost to $7.8 billion, with profit rising 21.8 percent to $769 million.

In the year, Turner Broadcasting and HBO contributed $12.5 billion in revenues, reflecting an 11-percent gain, with sub revenues up 8 percent, ad revenues up 14 percent and content revenue up 15 percent. Adjusted operating income grew 18 percent to $4.2 billion. In Q4, Networks revenues increased 14 percent to $3.3 billion, and operating income rose 20 percent to $904 million.

Filmed Entertainment had full-year revenues of $11.6 billion, a 5-percent rise, driven by higher television license fees and a stronger theatrical release slate, partly offset by lower home video revenues. Adjusted operating income declined 1 percent to $1.1 billion. In Q4, Warner Bros.’s revenues rose 10 percent to $3.6 billion thanks to increased television license fees. Adjusted operating income fell by 5 percent to $416 million.