Time Warner: Back in the black thanks to box office hits
Box-office hits such as *Sherlock Holmes* and *The Hangover* have helped the U.S. media conglomerate Time Warner return to profitability.
The net increase in the fourth quarter amounted to 627 million dollars, as Time Warner announced on Wednesday according to SDA.
Due to a huge write-down on its cable business, the parent company of news channel CNN and film studio Warner Bros posted a loss of 16 billion dollars in the same period last year. The economic crisis had left its mark on Time Warner, primarily due to falling advertising revenues. Last year, the Group therefore divested its cable business and the Internet subsidiary AOL in order to return to its roots such as film studios, publishing business and cable channels.
Excluding special items, earnings in the past quarter rose to 0.55 dollars per share from 0.19 dollars within a year. Sales climbed by two percent to 7.3 billion dollars, exceeding market expectations. Like rival News Corp, Time Warner announced an increase in the dividend. The Group also intends to triple its share buyback program to three billion dollars.
Due to a huge write-down on its cable business, the parent company of news channel CNN and film studio Warner Bros posted a loss of 16 billion dollars in the same period last year. The economic crisis had left its mark on Time Warner, primarily due to falling advertising revenues. Last year, the Group therefore divested its cable business and the Internet subsidiary AOL in order to return to its roots such as film studios, publishing business and cable channels.
Excluding special items, earnings in the past quarter rose to 0.55 dollars per share from 0.19 dollars within a year. Sales climbed by two percent to 7.3 billion dollars, exceeding market expectations. Like rival News Corp, Time Warner announced an increase in the dividend. The Group also intends to triple its share buyback program to three billion dollars.
