Time Warner Profit Exceeds Estimates

NEW YORK: Fourth-quarter earnings at Time Warner topped analysts’ expectations, with a higher Q4 profit and revenues up 5 percent.

Net income grew 0.5 percent to $773 million from $769 million reported in the same period 2010. Revenue grew to $8.2 billion, beating analysts’ predictions for $8.06 billion. Revenues grew 5 percent to $3.5 billion in its networks division in Q4, with increases of 5 percent in subscription revenues, 2 percent in ad revenues and 16 percent in content revenues. Revenues rose 7 percent in the filmed entertainment unit for the same period, to $3.9 billion. This was driven by stronger home entertainment and video game slates and new subscription VOD agreements. This growth was offset partly by lower theatrical film revenues and lower television license fees.

Chairman and CEO Jeff Bewkes said: “In 2011, Time Warner had an ambitious agenda and we accomplished what we set out to do and more. We increased revenues 8 percent, Adjusted Operating Income 9 percent, and Adjusted EPS by 20 percent, which means we more than doubled Adjusted EPS over the past three years. That performance is a testament to the quality of our content, the strength of our brands, our creative and managerial talent and our competitive position. We also continued to roll out Content Everywhere versions of our products across all our divisions, harnessing technology to give consumers more ways, places and platforms on which to enjoy our great content. While investing aggressively to drive our long-term growth, we also returned $5.6 billion to our shareholders through dividends and share repurchases.”

Bewkes continued: “For 2012, we will execute against the same strategic priorities that have driven our success in recent years: We’re investing aggressively in programming, production and marketing. We’re further accelerating our Content Everywhere initiatives. We’re expanding our presence internationally in attractive territories. And we’re maintaining our strict focus on operating and capital efficiency. Reflecting both our confidence and our continued commitment to strong shareholder returns, today we also announced an increase in our dividend and a new $4 billion stock repurchase authorization.”