Time Warner up on ad recovery
February 2, 2011
Time Warner posted fourth-quarter earnings ahead of Wall expectations, aided by a recovering TV advertising market. The company said net income from continuing operations was $769 million up 26 per cent from a year earlier.
Adjusted operating income rose 14 per cent to $1.4 billion. Sales rose 8 per cent to $7.8 billion. “In 2011, we’re even more confident about how we’re positioned, and we’ll be even more aggressive,” Time Warner chairman and chief executive officer Jeff Bewkes said. “We’ll increase our investments in programming, production and marketing even more than we did last year.”
Revenue at the company’s network division, which includes CNN and HBO, rose 14 per cent in the quarter, led by a 21 per cent jump in advertising sales and a 25 per cent surge in content sales. Subscription revenues climbed 9 per cent. For the full year, the company said ad sales were lifted by strong domestic demand, while content revenue increased thanks to licensing and home video sales. Overall revenue increased 11 per cent at its networks in 2010.