| MUMBAI:
Time Warner's revenues for the first quarter ended 31 March 2009 declined by seven
per cent from 2008 to $6.9 billion mainly due to decreases at the AOL, Publishing
and Filmed Entertainment segments, offset partially by an increase at the Networks
segment. Adjusted
operating income before depreciation and amortisation decreased by seven per cent
to $1.6 billion. Declines
at the AOL and Publishing segments more than offset growth at the Networks and
Filmed Entertainment segments. Operating income was down nine per cent to $1.2
billion. For
the Content Group (which consists of the Networks, Filmed Entertainment, Publishing
and Corporate segments), revenues declined by four per cent, adjusted operating
income before depreciation and amortisation grew three per cent and operating
income increased two per cent. Time
Warner chairman and CEO Jeff Bewkes says, “I’m pleased that our Content
Group grew Adjusted OIBDA by three per cent during the quarter – despite
a challenging economic environment that’s affecting all of our businesses,
particularly advertising at our AOL and Publishing segments. Our results keep
us firmly on track to achieve our full-year business outlook." At
the networks division (Turner Broadcasting and HBO) revenues climbed by six per
cent to $2.8 billion, with growth of nine per cent ($155 million) in subscription
revenues. This was offset partially by a decline of two per cent ($16 million)
in ad revenues. Subscription
revenues benefitted primarily from higher rates at both Turner and HBO and the
impact of the consolidation of HBO Latin America Group. Ad revenues decreased,
reflecting mainly declines at Turner’s international networks, due in part
to the impact of unfavourable foreign exchange rates and a slight decline at its
domestic entertainment networks reflecting weakened demand.
In
the film division, revenues declined by seven per cent ($207
million) to $2.6 billion, reflecting difficult comparisons
to the prior year quarter due primarily to lower DVD sales,
driven by fewer home video releases and reduced catalogue
sales in the current year quarter as well as the impact of
unfavourable foreign exchange rates and reduced theatrical
revenues.
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