Time Warner Inc., the world's largest media conglomerate, reported Wednesday fourth-quarter and full-year results which were roughly in line with Wall Street's expectations, as strong gains in cable television and from the sale of AOL's online access business in Europe.
Net profit rose to $327 million, or 33 cents per share, from $266 million, or 27 cents a share, a year earlier. Revenue rose 12 percent to $4.1 billion from $3.65 billion.
Without the one-time items, the earnings were 29 cents per share in the latest quarter, in line with estimates of analysts polled by Thomson Financial, compared with 23 cents per share a year ago.
Revenues rose 2 percent to $12.64 billion, close to the $12.65 billion expected by the analysts who were polled.
Cable, the company's largest unit by revenue, saw revenue rise 12 percent and operating income jump 26 percent. This was attributed to its digital phone service which added another 285,000 subscribers, compared with around 260,000 new phone subscribers expected by Soleil.
Time Warner reported a 32 percent loss in revenue at Internet service provider America Online, as it lost 29 percent of the subscribers it had a year earlier. Meanwhile, operating income at the unit dived 70 percent since it sold its Internet access business in Great Britain and France.
Looking ahead, the media conglomerate said it expects to report full-year earnings for 2008 in the range of $1.07 per share to $1.11 per share.
Overall in 2007, Time Warner reported income of $4.39 billion or $1.17 per share, compared to $6.55 billion or $1.55 per share in 2006. Revenues rose 6 percent to $46.48 billion.
Time Warner's results follow better-than-expected revenue and earnings reported from rival Walt Disney on Tuesday, along with narrow gains in earnings from News Corp. which met forecasts.