Time Warner reports more write-offs
February 5, 2009
Time Warner has reported a $16 billion operating loss for 2008, blaming it mainly on a $24.2 billion writedown of the value of assets. A year earlier, the owner of internet firm AOL, Warner Bros movie studios and CNN made an operating profit of $8.9 billion.
Fourth-quarter operating loss amounted to $22.2 billion, down from a profit of $2.3 billion a year earlier. Results were hit by the charge related to the shrunken value of Time Warner Cable assets. Time Warner Cable became a separately traded company in 2007, although Time Warner kept an 84 per cent stake. “Structurally, we’ll complete the Time Warner Cable separation soon,” said Time Warner chief executive Jeff Bewkes. The separation is expected to be completed by 31st March.