Time Warner Profits, Revenues Up in 2004
Time Warner had operating income of $1.6 billion in the fourth quarter of 2004, a 7% gain over the same period in 2003, the company announced today. Revenues rose slightly to $11.1 billion.
For the full year, Time Warner’s operating income rose 17% to $6.2 billion and revenues rose 6% to $42.1 billion.
Every division at the media conglomerate posted higher operating profits and revenues for the full year, although the company’s Filmed Entertainment unit saw fourth quarter revenues and profits fall from the year-earlier quarter.
Warner Bros. and New Line collectively led the film industry both at the box-office and in the DVD market, together accounting for 17.4% of the domestic U.S. box-office take and 19.7% of U.S. home video sales and rentals. Studio revenues rose 8% to $11.9 billion for the year and operating income rose to $1.2 billion from $1.1 billion.
The Networks division, which includes Cartoon Network, The WB, HBO, and the Turner channels, saw its revenues rise 7% to $9.1 billion and its operating income jump 36% to $2.5 billion. Advertising revenues rose by double-digit amounts at the Turner networks while The WB reported flat results.
Cable revenues rose slightly to $8.7 billion during the year and operating income rose to $1.8 billion. Subscription and advertising revenues were up by double-digit amounts.
Operating income at Time Warner’s troubled AOL unit was up smartly for the year, rising to $934 million from $662 million. Revenues were up slightly to $8.7 billion. Improved results were due largely to higher advertising revenues, though subscriptions continued to fall. AOL ended the year with 22.2 million subscribers, a decline of 2 million over the year.
Publishing revenues were flat at $5.6 billion, but operating income at the unit rose 41% to $934 million.
[Source: Business Wire]