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.