| MUMBAI:
US media comglomerate Time Warner has reported financial results for its second
quarter ended 30 June, 2007. In addition, Time Warner’s board of directors
has authorised a new $5 billion stock repurchase programme. In
the quarter, revenues rose six per cent over the same period in 2006 to $11 billion,
led by growth in the cable segment. Adjusted operating income before depreciation
and amortisation climbed 20 per cent to $3.1 billion, reflecting double-digit
increases at the cable, publishing and networks segments. This
growth was offset partly by declines in the film and AOL segments. Operating income
was up 12 per cent to $1.9 billion. Time
Warner chairman and CEO Dick Parsons said: “I’m pleased with Time Warner’s
solid results for the quarter. Our performance over the first half of 2007 keeps
us firmly on track to achieve all of the company's full-year financial objectives.
Driving this quarter’s profits were gains at our Cable, Publishing and Networks
segments. "Most
importantly, our earnings per share delivered double-digit growth, benefiting
from our recently completed stock repurchase program. Building on this success,
I’m pleased to announce that our Board of Directors has approved a new $5
billion stock repurchase programme to complement our recently announced increase
in our regular quarterly cash dividend. Supported by our strong balance sheet,
robust generation of Free Cash Flow and excellent growth prospects, this new program
and last week’s increase in our regular quarterly cash dividend further advance
our commitment to return value directly to our shareholders. At the same time,
we will continue to invest in organic growth as well as in attractive strategic
opportunities.” At
AOL revenues declined by 38 per cent to $1.3 billion, resulting from a 55 per
cent decrease ($855 million) in subscription revenues, offset partially by a 16
per cent increase ($73 million) in advertising revenues. The decline in subscription
revenues was due to a decrease in domestic AOL brand subscribers, which reflects
in part AOL’s previously announced strategy to offer its e-mail, certain
software and other products free of charge to broadband users in the US, as well
as the sales of AOL’s Internet access businesses in the U.K., France and
Germany (approximately $400 million). Ad
revenues benefited from growth in display and paid-search advertising on the AOL
Network as well as in sales of advertising on partner sites. At Turner Broadcasting
and HBO revenues declined by one per cent to $2.6 billion, reflecting an 11 per
cent decrease in ad revenues, offset partly by a four per cent increase in subscription
revenues. The
decline in ad revenues was due to the cessation of The WB Network’s operations
in September 2006, offset partially by a 6 per cent increase at Turner. The increase
in subscription revenues resulted primarily from higher rates and, to a lesser
extent, increased subscribers at Turner. In
the film division revenues decreased by five per cent to $2.3 billion, due primarily
to lower revenues from television product, as the prior-year quarter included
the second-cycle syndication availability of Friends and the off-network
availability of the first three seasons of Without a Trace. Also
contributing to the decline were difficult prior year comparisons in worldwide
home video, which included revenue from Harry Potter and the Goblet of Fire
in the prior year quarter, as well as reduced television licensing on made for
theatrical product. These declines were offset partly by higher theatrical revenue,
primarily from Warner Bros.’ Ocean’s 13 and 300. | 
