Time Warner Reports Third Quarter 2005 Results
Time Warner Inc. on Wednesday reported financial results for its third quarter ended September 30, 2005.
For the quarter, Revenues rose 6% over the same period in 2004 to $10.5 billion, led by growth at the Cable, Networks, Filmed Entertainment, and Publishing segments. Operating Income rose 60% to $1.8 billion, due primarily to the absence of the prior-year’s charge to establish legal reserves of $500 million related to the government investigations. Net Income was $897 million, or $0.19 per diluted common share, compared with Net Income in 2004 of $499 million, or $0.11 per diluted common share.
Time Warner also reaffirmed its 2005 full-year business outlook, saying that the full-year growth rate in Adjusted Operating Income before Depreciation and Amortization will be in the high-single digits, off a base of $9.9 billion in 2004. The company continues to expect that it will convert between 30% to 40% of its 2005 Adjusted Operating Income before Depreciation and Amortization into Free Cash Flow.
Separately, Time Warner’s Board of Director has authorized a $7.5 billion increase in the stock repurchase program to a total of $12.5 billion over the next 21 months, in keeping with the two-year schedule for the original stock repurchase program announced August 3, 2005. As of October 31, 2005, the company has repurchased approximately 45 million shares of common stock for approximately $809 million.
[Source: Time Warner]