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Time Warner Posts $16 Billion Q4 Loss

Feb 4, 2009  •  Post A Comment

Time Warner on Wednesday reported a $16 billion loss in the fourth quarter and a $13 million loss for all of 2008.
The bulk of the loss was the result of a $24 billion charge against asset impairments.
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“We’re making progress at Time Warner toward our goals of becoming a more content-focused company and delivering increasing returns to our stockholders,” chairman and CEO Jeff Bewkes said in a statement. “Last year, our priorities were to rationalize our structure and improve our operating performance. Despite the challenging economic environment, we achieved most of what we set out to do. Moving into 2009, we intend to build on these accomplishments.”
Time Warner also said it expects its adjusted diluted income per share from continuing operations to be flat in 2009 compared to the 66 cents a share it earned in 2008. It said that figure reflects $250 million in restructuring costs at AOL and Warner Bros.
The earnings outlook does not include results from the company’s cable segment, which is being spun off.
Time Warner directors have authorized a reverse stock split of either 1-for-2 or 1 for 3.
“Operationally, we’ll continue to improve the efficiency of our businesses while creating even more of the compelling content that’s becoming increasingly valuable,” Mr. Bewkes said in the statement.
“Structurally, we’ll complete the Time Warner Cable separation soon. At the same time, we’ll strengthen our balance sheet, improve our strategic flexibility and return capital to our stockholders on a consistent basis. Through these steps, we expect to emerge from this downturn in an even stronger competitive position.”
The net loss for the quarter of $16 billion, or $4.47 a share, compares to $1 billion, or 28 cents a share, in net income a year ago. For the full year, the company lost $13.4 billion, or $3.74 a share, compared to net income of $4.3 billion or $1.17, in 2007.
For the quarter, revenues fell to $12.3 billion from $12.6 billion, or 3%. For the full year, revenues grew 1% to $47 billion, reflecting increases at the company’s cable and networks segments.
Operating income for Time Warner’s Networks segment, which includes Turner Broadcasting and HBO, fell 24% to $586 million in the fourth quarter. The results included a charge of about $270 million in connection with losing a lawsuit over the sales of its basketball and hockey teams.
Revenues rose 9% to $2.9 billion. Ad revenue rose 7% to $65 million, and subscription revenues rose 7% to $113 million.
For the full year, the network segment’s operating income was up 3% to $3.1 billion as revenues rose 9% to $11.2 billion. Ad revenues were up 10% and subscription revenues were up 9%

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