Companies Report 2Q Earnings
Time Warner, Viacom, and Pixar all reported second quarter financial results this week.
Time Warner’s revenues decreased 1% over the same period in 2004 to $10.7 billion, with expected declines at the Filmed Entertainment and AOL segments offset almost entirely by growth at the Cable, Networks, and Publishing segments. The Company reported an Operating Loss of $1.2 billion, due to legal reserves related to the securities litigation, which reduced Operating Income by $3 billion. This compares to Operating Income in the prior-year quarter of $1.8 billion. Diluted Loss per Common Share was $0.07 for the three months ended June 30, compared to income of $0.19 in last year’s second quarter. The net impact decreased the current-year results by $0.25 per diluted common share. The media company says it is on track to deliver revenue growth in the mid-single digit percentage range and high-single digit operating income growth for 2005.
Viacom’s revenues increased 10% to $5.9 billion from $5.4 billion for the same quarter last year, led by growth in nearly every business segment including gains of 14% in Cable Networks and 24% in Entertainment, as well as increases in Outdoor and Radio. Viacom’s revenues from advertising climbed 6%. Operating income increased 4% to $1.4 billion, paced by increases of 14% in Cable Networks, 5% in Outdoor, and 2% in Radio. These gains more than offset declines at Entertainment, mainly due to the timing and related advertising costs of theatrical releases, and at Television. Net earnings from continuing operations in the second quarter of 2005 rose 6% to $762 million from $717 million, an increase of 15% to $0.47 per diluted share, compared with $0.41 per diluted share in the prior year.
Pixar reported revenues of $26.4 million and earnings of $12.7 million, or $0.10 per fully diluted share, down 60% from $0.32 last year. Revenues for the six months ended July 2, 2005 were $187.7 million, and earnings were $94.6 million, or $0.77 per fully diluted share.
[Sources: Business Wire, PR Newswire (1), PR Newswire (2), Business Week]