Time Warner records highest revenue growth since 2003

MUMBAI: US media conglomerate Time Warner?s revenue for the full-fiscal ended December has increased eight per cent to $29 billion, its highest growth rate since 2003.

Adjusted operating income rose by nine per cent to a record $5.9 billion. Adjusted EPS grew 20 per cent to $2.89.

Time Warner chairman, CEO Jeff Bewkes said, ?While investing aggressively to drive our long-term growth, we also returned $5.6 billion to our shareholders through dividends and share repurchases. For 2012, we will execute against the same strategic priorities that have driven our success in recent years: We?re investing aggressively in programming, production and marketing. We?re further accelerating our Content Everywhere initiatives. We?re expanding our presence internationally in attractive territories. And we?re maintaining our strict focus on operating and capital efficiency."

Time Warner announced an increase in dividend and a new $4 billion stock repurchase authorisation.

Revenue increase for the year reflected growth at the Networks and film segments. Adjusted operating Income rose by nine per cent to $5.9 billion, due to strong results at all of the company?s segments. Operating income increased by seven per cent to $5.8 billion. Adjusted operating income and operating income margins were each 20 per cent in 2011, the same as in 2010.

Fourth-quarter revenues increased by five per cent from the year-ago quarter to $8.2 billion, reflecting higher revenues at the film and networks segments. Adjusted operating income rose by 20 per cent to $1.7 billion, driven by strong results across the company?s segments. Adjusted operating Income margins were 21 per cent versus 18 per cent in the 2010 quarter. Operating income increased by 17 per cent to $1.7 billion in the quarter, while operating income margins were 20 per cent compared to 18 per cent in the 2010 quarter.

In the Networks segment (Turner Broadcasting and HBO) revenues for the year grew by nine per cent ($1.2 billion) to $13.7 billion, with increases of six per cent ($495 million) in subscription revenues, 12 per cent ($453 million) in ad revenues and 21 per cent ($202 million) in content revenues.

The increase in subscription revenues resulted mainly from higher domestic rates and international subscriber growth.

The growth in ad revenues was driven by strong pricing domestically, sports programming, including the NCAA Division I Men?s Basketball Championship events, and growth at Turner?s international networks, including acquisitions.
Content revenues benefited from higher sales of HBO original programming and higher licensing revenues at Turner.

Adjusted operating income increased by six per cent ($266 million) to $4.4 billion, reflecting higher revenues partly offset by increased expenses, including higher programming and marketing costs, as well as increased costs related to international growth. Programming costs grew by 12 per cent, due primarily to higher expenses for sports and original programming and international growth.

In the film segment for the year, revenues rose by nine per cent ($1 billion) to $12.6 billion, led by the strong theatrical and home entertainment performance of ?Harry Potter and the Deathly Hallows: Part 2? and the home entertainment performance of ?Harry Potter and the Deathly Hallows: Part 1?.

Revenues also benefited from a stronger videogames release slate, higher television license fees, new subscription video-on-demand agreements and the favourable effect of foreign exchange rates.

Key 2011 videogame releases included Batman: Arkham City, Mortal Kombat 9 and several Lego titles. Television license fees increased due mainly to improved worldwide syndication, which included the off-network availability of ?The Big Bang Theory?. This growth was offset in part by fewer home video releases and difficult theatrical comparisons to the prior year.

Adjusted operating income increased by 16 per cent ($174 million) to $1.3 billion, as a result of higher revenues.

Operating income increased by 14 per cent ($156 million) to $1.3 billion. In 2011, Warner Bros. grossed $4.7 billion at the worldwide box office, led by the top grossing film, ?Harry

Potter and the Deathly Hallows: Part 2?. Warner Bros. also became the first studio to exceed $4 billion in global box office for three consecutive years.

For the 2011-2012 broadcast television season, Warner Bros. has produced more than 30 scripted primetime series, making it the leading supplier of primetime programming to the broadcast networks.