Time Warner (TWX) Delivers With Better Than Expected Q3 Profits

November 4, 2009 7:53 AM EST

Time Warner (NYSE: TWX) reported third-quarter earnings of 61 cents per share, 8 cents better than the market consensus of 53 cents, and down from the 65 cents per share in the year-ago quarter. Revenues fell 6 percent to $7.13 billion, slightly ahead of the consensus of $7.08 billion.

The company saw lower revenues at Time Warner's AOL, Publishing, and Film Entertainment segments of business, which more than offset the growth in the Networks segment. The Company saw its operating income drop by 10 percent.

Time Warner has increased its full year guidance for 2009 earnings per share to $2.05, up from the previous forecast of $1.98. The Company expects 2009 full-year Content Group Adjusted EPS to be at least $1.75, compared to Content Group Adjusted EPS of $1.42 in 2008.

"Time Warner is firmly on track to post solid results this year in spite of the tough economic environment. Driven by the better-than-expected performance at our Content Group this quarter, we're raising our 2009 business outlook,” Time Warner Chairman and Chief Executive Officer, Jeff Bewkes said.

The reported results for Time Warner's battered AOL continued to look bleak in the third quarter, as revenues for the segment were down 23 percent due to a 29 percent drop in subscription revenues. AOL also saw an 18 percent decrease in advertising revenue.

"We still expect to spin off AOL by the end of the year, and we're making great progress on our other longer-term strategic priorities," Bewkes stated.

Time Warner is currently priced at $31 per share before the market opens today, above yesterday's close of $30.16.

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