Time Warner boosted by cable growth
November 5, 2009
Time Warner raised its profit outlook for 2009 boosted by better than expected results at its cable channels and films division, even as it reported a 40 per cent lower net income for the third quarter.
The owner of CNN and the Warner Bros movie studio said it will take a $100 million charge for restructuring at its publishing division in the fourth quarter, which continued to face steep declines in advertising and subscription revenue.
Time Warner net profit fell to $661 million from $1.1 billion from the year ago period when it still owned a cable services division. Revenue fell 6 per cent to $7.1 billion. Revenue at its cable networks rose 5 per cent to $2.9 billion and operating profit before depreciation and amortisation rose 9 per cent, from higher affiliate fees paid to them by pay television providers. Advertising fell 1 per cent to $768 million, less severe than some projections.