Time Warner income sags
November 9, 2007
Time Warner reported a 9 per cent rise in third-quarter revenue of $11.767 billion, however net income was down to $1.1 billion from $2.3 billion 12 months earlier due to discontinued operations and one-off items.
The group’s main revenue driver, Time Warner Cable, posted a 25 per cent increase in revenue to $4 billion, with revenue at its network business, which includes HBO and TBS, up 6 per cent to $2.6 billion. However revenue at AOL slid 38 per cent to $1.2 billion as the ongoing switch to an ad-funded model meant subscription revenue declined 56 per cent.
Jeff Bewkes, chief executive-in-waiting fuelled speculation that the media group would change shape by suggesting acquisitions, spin-offs and asset sales would be considered. “We will be looking at basically anything that can improve our strategic advantage over our competitors, and that has a good long-term return, and that will be true for acquisitions or divestitures,” he said.
He added: “This company has to move faster”, referring to the need to respond to the rapid shifts in consumer behaviour and distribution of media in light of the proliferation of high-speed internet connections.