Earnings: Time Warner Q3 Profit Dips On Flat Rev; $100M Charge For Time Cuts; AOL Ads Drop 6 Percent
This story was written by Staci D. Kramer.
Time Warner (NYSE: TWX) managed to keep its net income from slipping much during Q3 but, with revenue "essentially flat" and a $100-125 million charge for Time Inc. layoffs on the way, followed other media companies by trimming its 2008 outlook today. Between New Line, Time Inc and some other restructuring, the company says the total charges by the end of 2008 could top $300 million. (That would seem to suggest the major cuts are done and that AOL won't take a big hit in Q4 but this economy doesn't offer much in the way of guarantees.)
TWX reported Q3 revenue of $11.7 billion, with Cable, Networks and Filmed Entertainment growth offsetting declines in Publishing and AOL. Profit dipped nearly 2 percent to $1.067 billion from $1.086 billion in Q307 but earnings per share increased slightly to $.30 from $.29. Via Marketwatch, the FactSet Research consensus estimate was 27 cents a share on $11.8 billion in revenue. More to come.
Earnings release | Webcast | Business outlook
By Staci D. Kramer