Time Warner: Positive 4Q, TV Revs Up 4%

As part of its positive fourth-quarter earnings picture, Time Warner took in more TV revenues during the period. But this didn't come from advertising sales, which were lower.

Unlike other major media companies, Time Warner posted 4% lower advertising sales to $905 million among its ad-supported television networks, which include TNT, TBS, CNN, and Headline News.

The company said: "Advertising revenues reflected a decline at Turner's news networks, due largely to audience declines, in part tied to the impact of the 2008 election coverage, and weakened demand, as well as the negative impact of foreign exchange rates at Turner's international entertainment networks."

But subscription fees to those channels -- including the entire HBO group -- more than made up for it, climbing 11% to $1.9 billion. Overall, the network group witnessed a 4% rise in revenues to $3.06 billion. This gave its TV networks almost a 30% rise in operating income to $772 million.

Time Warner's Warner Bros. unit grabbed 7% more revenues to reach $3.3 billion, mostly from its theatrical films unit, which grew 10% to $2.1 billion during the period. Good box-office results from movies such as "The Blind Side" and "Sherlock Holmes" and higher home video revenues from "Harry Potter and the Half-Blood Prince" and "The Hangover" pushed up results.

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There was also growth in games "LEGO Indiana Jones 2: The Adventure Continues" and "LEGO Rock Band." The unit's operating income grew almost 40% to $436 million.

Time Warner's third big business -- publishing -- did less well, with revenues 13% lower than the fourth-quarter period in 2008, at $1.1 billion. Operating income was at $79 million against a $7 billion loss in 4Q 2008.

However, Time Warner improved to an operating income of $1.2 billion, compared to an operating loss in the prior year fourth quarter, with $6.3 billion. Net income was $635 million compared to a loss of $17.4 billion the year before.

For the entire 2009 year, Time Warner swung to a net income of $2.5 billion versus a $14.7 billion loss in 2008.

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