November 15, 2024

Media Decoder Blog: Cable TV Revenue Help Spur Time Warner Profit

2:14 p.m. | Updated The cable television business helped propel Time Warner to a 51-percent increase in net income and offset weakness in magazine publishing and movies in the three months that ended Dec. 31.

The media company said Wednesday that an increase in advertising revenue and subscription fees paid by cable and satellite companies to carry channels like TNT and TBS helped lift net income in the fourth quarter to $1.17 billion, or $1.21 a share, up from $773 million, or 76 cents a share, in the same three-month period last year. Revenues remained flat at $8.2 billion.

The results underscore the widening gap between the fast-growing cable television business and the more challenged magazine publishing industry and, to a lesser degree, the movie businesses.

Time Warner also said on Wednesday that its board had approved $4 billion in stock buybacks and that it would raise its quarterly dividend by 11 percent to 28.75 cents per share.

Jeffrey L. Bewkes, Time Warner’s chairman and chief executive, called the cable television business the “core of the company.” He praised the premium cable channel HBO, pointing to the interest fueled by returning series like “Game of Thrones” and “True Blood” and new original series like “Girls.” HBO added domestic subscribers in the quarter, the company reported.

At the same time, Time Inc., the nation’s largest magazine publisher, readied for layoffs of 6 percent of its global work force, cutbacks that it announced last week. Time Warner estimated the reductions would cost an estimated $60 million in restructuring charges, which will be reported in the first quarter of 2013.

Revenue at the company’s television networks, which include TNT, TBS, and CNN, rose 5 percent to $3.67 billion in the quarter. Subscription and advertising revenues at Time Warner’s suite of cable channels grew 7 percent and 3 percent, respectively, in the quarter, compared with last year. An increase in the number of National Basketball Association games on Turner channels, as well as coverage of the presidential election on CNN, led to higher ratings.

Mr. Bewkes said that, even with the boon from election coverage, CNN’s ratings disappointed. He praised the recent choice of Jeff Zucker, a former chief executive of NBC Universal, to lead CNN. “I’m optimistic that with the new leadership we’ve announced, CNN will once again fulfill the promise of its iconic brand,” he said on a conference call with analysts.

Revenue at the Warner Brothers studio fell 4 percent in the quarter to $3.7 billion, due largely to a tough comparison with 2011, which included the home entertainment release of the popular “Harry Potter and the Deathly Hallows: Part 2.” The performance of “Argo” and “The Hobbit: An Unexpected Journey” lifted Warner Brothers’ performance in the quarter and contributed to a 29 percent increase in operating income to $522 million.

Last week, Time Warner announced that Kevin Tsujihara, currently the head of the studio’s home entertainment division, would succeed Barry M. Meyer as chief executive of Warner Brothers. “I chose him because he’s got the greatest breadth of experience across Warner’s businesses,” Mr. Bewkes said on Wednesday.

Time Inc., the publisher of People, Sports Illustrated and InStyle, represents a small part of Time Warner’s overall business, but nevertheless continued to weigh on the company’s overall results. Revenues at Time Inc. declined 7 percent to $967 million, while advertising revenues fell 4 percent, or $24 million. Subscription revenues remained flat.

For the full fiscal year, which also ended Dec. 31, Time Warner reported net income of $3 billion, or $3.09 per share, compared with $2.9 billion, or $2.71 per share in 2011. In the full fiscal year, revenues decreased 1 percent to $28.7 billion.

Article source: http://mediadecoder.blogs.nytimes.com/2013/02/06/cable-tv-revenues-helps-spur-time-warner-profit/?partner=rss&emc=rss

Around the World, Protests Against Economic Policies

In Rome, a rally thick with tension spread over several miles. Small groups of violent young people turned a largely peaceful protest into a riot, setting fire to at least one building and a police van and clashing with police officers, who responded with water cannons and tear gas.

Local news media reported that dozens of protesters had been injured. Law enforcement officials would not confirm those figures, but said 20 police officers had been hurt.

In other European cities, including Berlin and London, the demonstrations were largely peaceful, with thousands of people marching past ancient monuments and gathering in front of capitalist symbols like the European Central Bank in Frankfurt. Elsewhere, the turnout was more modest, but rallies of a few hundred people were held in cities including Sydney, Australia, Tokyo and Hong Kong. Protests also continued in New York and were held in several other cities in the United States and Canada.

But just as the rallies in New York have represented a variety of messages — signs have been held in opposition to President Obama yards away from signs in support of him— so Saturday’s protests contained a grab bag of messages, opposing nuclear power, political corruption and the privatization of water.

Despite the difference in language, landscape and scale, the protests were united in frustration with the widening gap between the rich and the poor.

“I have no problem with capitalism. I have no problem with a market economy. But I find the way the financial system is functioning deeply unethical,” Herbert Haberl, 51, said in Berlin. “We shouldn’t bail out the banks. We should bail out the people.”

In New York, where the occupation of Zuccotti Park in Lower Manhattan was moving into its second month, a large crowd marched north early Saturday afternoon to Washington Square Park, where they were joined by several hundred college students who spoke, among other things, about student debt and unemployment. Another march, to Times Square, was planned for later.

Earlier, about a dozen protesters entered a Chase branch in Lower Manhattan and withdrew their money from the bank while 300 other people circled the block, some shouting chants and beating on drums. The former Chase customers, who declined to reveal how much they had in their accounts — though a few acknowledged it was not much — said they planned to put their money into smaller banks or credit unions.

About 20 people were arrested while demonstrating at a Citibank branch in Greenwich Village.

In Washington, several hundred people marched through downtown, beginning in the early morning, passing by several banks. Escorted by the police, the marchers also demonstrated in front of the White House and the Treasury Department before moving on to a rally on the National Mall, where they were joined by representatives of unions and other supporters.

Kelly Mears, 24, a former software engineer, said he was despondent about the direction of the country and was inspired to join the protest after following the one in New York on Twitter and other social media. Mr. Mears and dozens of other protesters have been camped out in McPherson Square, a park not far from the White House, for the past two weeks.

“You see how people are beholden to corporate interest no matter how hard you might have worked to get them elected,” Mr. Mears said. “There is a disconnect.”

Saturday’s protests sprang not only from Occupy Wall Street movement that began last month in New York, but also from demonstrations in Spain in May. This weekend, the global protest effort came as finance ministers and central bankers from the Group of 20 industrialized nations meet in Paris to discuss economic issues, including ways to tackle Europe’s sovereign debt crisis

In London, where crowds assembled in front of St. Paul’s Cathedral, the ubiquitous emblems of the movement were in evidence. “Bankers Are the Real Looters” and “We Are the 99 Percent,” read several placards and flags. One demonstrator, dressed as Jesus Christ, held a sign that said “I Threw the Money Lenders Out for a Reason.”

Brief clashes were reported in London, where the police were out in force with dozens of riot vans, canine units and hundreds of officers. But the gathering, attended by people of all ages, was largely peaceful, with a picnic atmosphere and people streaming in and out of a nearby Starbucks.

Rachel Donadio reported from Rome, and Elizabeth A. Harris from New York. Reporting was contributed by Kevin Drew from Hong Kong, Jack Ewing from Frankfurt, Nicholas Kulish from Berlin, Colin Moynihan and Christopher Maag from New York, Ron Nixon from Washington, Matt Siegel from Sydney, Australia, Ravi Somaiya from London and Hiroko Tabuchi from Tokyo.

Article source: http://www.nytimes.com/2011/10/16/world/occupy-wall-street-protests-worldwide.html?partner=rss&emc=rss