Time Warner Q1 revenue falls 7% to $6.9 bn

Time Warner Q1 revenue falls 7% to $6.9 bn

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.

Sign up for our Newsletter

subscribe for latest stories

* indicates required