Time Warner's 3Q revenues up 6 per cent to $10.5 billion

MUMBAI: Media conglomerate Time Warner has announced results for the third quarter ended 30 September 2005. Revenues rose by six per cent over the same period in 2004 to $10.5 billion, led by growth at the cable, networks, movies and publishing segments.

Adjusted operating income before depreciation and amortisation climbed by nine per cent to $2.6 billion, reflecting strong double-digit increases at the networks and cable segments as well as gains at the AOL and Publishing segments. This growth was offset partly by a decline at the movies segment due to difficult prior-year comparisons. Operating Income rose by 60 per cent to $1.8 billion, due primarily to the absence of the prior-years charge to establish legal reserves of $500 million related to the government investigations.

Net debt totalled $12.4 billion, down $3.8 billion from $16.2 billion at the end of 2004. Revenues at HBO, WB Networkm and TBS grew by 10 per cent ($210 million) to $2.4 billion, reflecting higher content, subscription and ad revenues. Content revenues climbed 38 per cent ($83 million), driven by HBOs broadcast syndication sales of Sex and the City and higher international sales of HBO original programming.

Subscription revenues rose by five per cent ($69 million), resulting mainly from higher rates at Turner and HBO and, to a lesser extent, an increase in subscribers at Turner. Ad revenues were up 8% ($54 million), led by 12 per cent growth at the Turner networks. Operating Income before depreciation and amortisation climbed 21 per cent ($131 million) to $766 million. Growth in subscription and ad revenues, as well as contributions from HBOs broadcast syndication sales of Sex and the City, were offset partially by an increase in original programming expenses at Turner and higher overall general operating expenses.

The company's board of directors has authourised a $7.5 billion increase in the stock repurchase program to a total of $12.5 billion over the next 21 months, in keeping with the two-year schedule for the original stock repurchase programme announced in August 2005. Purchases for the stock repurchase programme may be made from time to time on the open market and in privately negotiated transactions.

Size and timing of these purchases will be based on factors including price as well as business and market conditions. As of 31 October, 2005, the company has repurchased approximately 45 million shares of common stock for approximately $809 million. Revenues at AOL fell by five per cent to $2.0 billion, reflecting a 28 per cent increase ($71 million) in ad revenues. This was more than offset by a 10 per cent decrease ($175 million) in subscription revenues. Ad revenues benefited from growth in paid search ($31 million) and ($31 million), which was acquired in August 2004. The decrease in subscription revenues was due primarily to a decline in domestic AOL brand subscribers.

As of 30 September 2005, the AOL service totaled 20.1 million U.S. members, a decline of 678,000 from the prior quarter and 2.6 million from the year-ago quarter. In Europe, the AOL service had 6.1 million members, a decrease of 98,000 from the previous quarter and a decline of 170,000 from last years quarter.

Revenues from the cable division of Warner rose by 13 per cent ($274 million) to $2.4 billion, driven by a 13 per cent climb ($269 million) in Subscription revenues and a four per cent increase in ad revenues. Subscription revenues benefited from a 24 per cent increase ($106 million) in high-speed data revenues, significant growth in digital phone revenues ($76 million), 16 per cent growth ($27 million) in enhanced digital video service revenues and higher basic cable rates. Average monthly revenue per basic cable subscriber rose 13% to $86, marking the seventh consecutive quarter of double-digit, year-over-year growth.

Revenues from movies rose by six per cent ($147 million) to $2.7 billion, led by the strong domestic theatrical performance of Warner Bros. Charlie and the Chocolate Factory and Batman Begins as well as New Lines Wedding Crashers. Also contributing to the increase were higher television revenues from home video and international sources. This growth was offset partially by the difficult comparison to the prior-year quarters international theatrical revenues.


Latest Reads
A+E Networks | TV18 launches FYI TV18 HD

AETN18, the joint venture between A+E Networks and Network18 has planned to launch the high definition (HD) version of the contemporary lifestyle entertainment channel—FYITV18 on 18 October 2018.

Television TV Channels Specialised and Niche
Tata Communication, European Tour show how VR can transform golf

The European Tour and Tata Communications have completed the world’s first test of live 360° video in 8K Ultra High Definition – the highest resolution in digital television on 16 October 2018.

Television TV Channels Sports
Kids most benefited genre in Chrome DM week 41

MUMBAI: With a growth of 0.72 per cent as compared to last week (40), the kids genre marked the highest opportunity to see (OTS) among all categories in week 41 of Chrome Data Analytics & Media. In the kids genre, Nickelodeon gained the highest OTS with 91 per cent in All India 1 Lakh+ market....

Television TV Channels Viewership
Prepare for three months of fireworks as COLORS SUPER premieres Bigg Boss Kannada – Season 6

Television viewing has never been the same, since the introduction of reality programming kingpin

Television TV Channels Regional
Star Bharat brings Kaal Bhairav Rahasya 2 with a new mystery

India has had age old history associated with myths legends folklore and one of the biggest myth has been that of the curses.

Television TV Channels GECs
Industry Honchos Uday Kotak, Rajnish Kumar and Kalpana Morparia come together to identify the winners of IBLA 2019

CNBC-TV18’s most-awaited marquee property, The India Business Leaders Awards will be conducting a jury meet along with an informative and insightful panel discussion on Today at Trident BKC, Mumbai, 2:30 pm.

Television TV Channels News Broadcasting
News18 India Unveils Two New Shows- “Ye Desh Hai Humara” and “Akhada”

Ahead of the upcoming assembly elections in 5 states including MP & Rajasthan and general elections next year

Television TV Channels News Broadcasting
Zee Telugu Announces World Television Premiere of Allu Arjun starrer Naa Peru Surya

Filling this weekend with patriotism, action and drama, Zee Telugu is here with a world television premiere movie of a young man discovering himself while finding the right balance between serving his country and overcoming the hurdles thrown at him due to the power struggles in place.

Television TV Channels Regional
BTVI endeavors to increase financial literacy across India through Money Mantra

Business Television India (BTVI), India’s Premier English Business News Channel, introduces a multicity initiative - Money Mantra which is an effort to expand the financial awareness and literacy by bringing together, personal financial experts and mutual fund experts close to the common man and...

Television TV Channels News Broadcasting

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories