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MUMBAI: US media conglomerate Time Warner has announced that
its revenues rose four per cent over 2005 to $44.2 billion,
reflecting increases at the company’s cable and networks
segments.
Time Warner chairman and CEO Dick Parsons said, “I am
delighted that 2006 proved to be a good year for Time Warner.
Taken together, our businesses performed well, and we achieved
all of our announced financial objectives. We successfully
executed on our strategy – enabling us to lead our industry
and lay the foundation for creating significant new value.
At the same time, we returned billions of dollars directly
to our shareholders through dividends and stock repurchases.
“We expect 2007 to be another superb year for Time Warner.
Our businesses are well positioned to generate strong operating
and financial performances. On the strategic front, we aim
to create substantial incremental value by completing the
integration of our recently acquired cable systems, further
developing AOL’s online advertising business, and driving
digital initiatives across the entire company.
"In addition, we will continue to allocate our capital
effectively, including the expected completion of our current
$20 billion stock repurchase programme during the first half
of 2007.”
Fourth-quarter revenues climbed by eight per cent over the
same period in 2005 to $12.5 billion, driven by increases
at the cable and networks segments. In its networks division
which comprises of Turner Broadcasting and HBO revenues for
the year rose by seven per cent ($703 million) to $10.3 billion,
benefiting from growth in subscription, ad and content revenues,
including the consolidation of Court TV ($253 million) from
January 1, 2006.
Subscription revenues climbed nine per cent ($498 million),
due to higher rates and, to a lesser extent, increased subscribers
at Turner and HBO, as well as the consolidation of Court TV
($84 million). Included in the prior year results was a $22
million benefit from the resolution of certain contractual
agreements at Turner. Ad revenues were up four per cent ($111
million), led by a 13 per cent increase at Turner, including
Court TV ($164 million), offset primarily by the cessation
of The WB Network’s operations in September 2006.
Content revenues increased seven per cent ($70 million),
due mainly to higher sales of HBO’s original programming,
including the domestic cable sale of The Sopranos,
offset partially by lower syndication sales of Sex and
the City and the prior year licensing revenues from Everybody
Loves Raymond, which ended its broadcast run in 2005.
At AOL revenues for the year declined by five per cent ($417
million) to $7.9 billion, due to a 14 per cent decrease ($971
million) in Subscription revenues, offset in part by a 41
per cent increase ($548 million) in ad revenues.
The lower subscription revenues resulted mainly from a decline
in domestic AOL brand subscribers, which related partially
to AOL’s strategy, implemented in August 2006, of offering
its e-mail, certain software and other products free of charge
to Internet users. Ad revenues reflected strong growth in
display advertising, advertising run on third-party Web sites
generated by Advertising.com and paid-search advertising.
In the film segment revenues decreased by 11 per cent ($1.3
billion) to $10.6 billion, due to difficult comparisons to
the prior year record performance at Warner Bros. In 2005,
Warner Bros. finished number one in worldwide theatrical box
office, driven by the success of Harry Potter and the Goblet
of Fire, Charlie and the Chocolate Factory and
Batman Begins.
In addition, a strong theatrical slate contributed to a
record performance at Warner Home Video during 2005. These
difficult comparisons and the lower performance of the theatrical
slate in 2006 led to a decline at Warner Home Video in 2006.
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