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2005-11-02 18:04:19 UTC
Link may expire, so here is article.
Time Warner Profits Jump 80 Percent
Wednesday, November 02, 2005
New York Time Warner Inc. (TWX) on Wednesday reported an 80 percent
jump in third-quarter profit, beating analyst expectations, as
high-speed Internet and digital phone services drew more subscribers
and online advertising sales increased.
Addressing concerns by billionaire activist Carl Icahn (search), Time
Warner also said it more than doubled its stock buyback commitment to
$12.5 billion from $5 billion.
The world's largest media company said earnings rose to $897 million,
or 19 cents per share, from $499 million, or 11 cents per share, a
year earlier.
The New York-based owner of HBO, the Warner Brothers movies studio and
Time magazine beat analysts' expectations of 17 cents per share,
according to Reuters Estimates.
In third quarter 2004, earnings were $494 million, or 10 cents per
share, excluding a $500 million legal reserve and gains on investments
and divestitures.
Revenue rose 6 percent to $10.5 billion.
Although revenue at AOL fell 5 percent, primarily from a drop in
dial-up subscribers, online advertising revenue rose 28 percent,
factoring in its Advertising.com purchase last year. AOL lost 678,000
subscribers in the quarter, ending the period with 20.1 million.
Cable revenue rose 13 percent, boosted by a 24 percent increase in
high-speed Internet subscriber revenue. Average revenue per basic
cable subscriber rose 13 percent to $86. The cable division added
18,000 basic subscribers, ending the quarter with 10.9 million
subscribers.
"Charlie and the Chocolate Factory" and "Batman Begins" helped drive
film studio revenue up 6 percent.
The company is in the process of courting Microsoft Corp. (MFST),
Google Inc. (GOOG) and Comcast Corp. (CMCSA) to sell off a minority
stake in its AOL division.
Time Warner stock has fallen more than 8 percent since the beginning
of the year, underperforming the Standard & Poor's 500 index, which is
down only 2 percent, but holding up better than its media peers.
Time Warner Profits Jump 80 Percent
Wednesday, November 02, 2005
New York Time Warner Inc. (TWX) on Wednesday reported an 80 percent
jump in third-quarter profit, beating analyst expectations, as
high-speed Internet and digital phone services drew more subscribers
and online advertising sales increased.
Addressing concerns by billionaire activist Carl Icahn (search), Time
Warner also said it more than doubled its stock buyback commitment to
$12.5 billion from $5 billion.
The world's largest media company said earnings rose to $897 million,
or 19 cents per share, from $499 million, or 11 cents per share, a
year earlier.
The New York-based owner of HBO, the Warner Brothers movies studio and
Time magazine beat analysts' expectations of 17 cents per share,
according to Reuters Estimates.
In third quarter 2004, earnings were $494 million, or 10 cents per
share, excluding a $500 million legal reserve and gains on investments
and divestitures.
Revenue rose 6 percent to $10.5 billion.
Although revenue at AOL fell 5 percent, primarily from a drop in
dial-up subscribers, online advertising revenue rose 28 percent,
factoring in its Advertising.com purchase last year. AOL lost 678,000
subscribers in the quarter, ending the period with 20.1 million.
Cable revenue rose 13 percent, boosted by a 24 percent increase in
high-speed Internet subscriber revenue. Average revenue per basic
cable subscriber rose 13 percent to $86. The cable division added
18,000 basic subscribers, ending the quarter with 10.9 million
subscribers.
"Charlie and the Chocolate Factory" and "Batman Begins" helped drive
film studio revenue up 6 percent.
The company is in the process of courting Microsoft Corp. (MFST),
Google Inc. (GOOG) and Comcast Corp. (CMCSA) to sell off a minority
stake in its AOL division.
Time Warner stock has fallen more than 8 percent since the beginning
of the year, underperforming the Standard & Poor's 500 index, which is
down only 2 percent, but holding up better than its media peers.